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The glut came after companies began to stockpile chips amid the shortage to build up inventories. From profit boost to income plungeThe pandemic-induced shortage of semiconductors helped boost chip makers' profits as prices jumped. Meanwhile, SK Hynix swung to a loss in the second quarter versus a profit in the same period last year. Taiwan Semiconductor Manufacturing Company, the world's largest chipmaker, said last week that net income for the second quarter fell 23.3% from a year ago. Looking ahead, the PC market appears weak, which is likely to impact Samsung, SK Hynix and Micron.
Persons: Wong Yu Liang, Peter Hanbury, Hanbury, Sze Ho Ng Organizations: Bain & Company, CNBC, Samsung, SK Hynix, Micron, Taiwan Semiconductor Manufacturing Company, China Renaissance Securities Locations: oversupply
TSMC makes chips for a wide array of companies, including the latest semiconductors for Apple and Qualcomm as well as SoftBank -owned Arm. TSMC , the world's largest contract chipmaker, on Friday reported a surge in revenue in November thanks in part to orders of semiconductors for high-end smartphones such as Apple's iPhone. In October and November, TSMC's revenue totaled around $14.1 billion. Apple CEO Tim Cook also attended the event and said the iPhone maker would buy TSMC's U.S.-made chips. While TSMC's November revenue is getting a boost from Apple, analysts are worried about weaker orders next year.
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