Taiwan Semiconductor Manufacturing (TSMC) offered a modest fourth-quarter revenue growth outlook, predicting weaker sales of high-performance computers for cryptocurrency mining will partially offset solid demand for chips from smartphones, Reuters reported.
TSMC, the world’s largest contract chipmaker whose main clients include iPhone maker Apple, shrugged off concerns over the ongoing China-U.S. trade tensions hurting its sales, betting investment in advanced chipmaking technology will help cushion the impact.

Key rival GlobalFoundries said recently that it would not compete in the latest generation of chipmaking technology that is hotly sought after by high-end device makers.

“Despite the current market uncertainties, our business will benefit from a continued steep ramp (up) of 7 nanometre for several high-end smartphones,” TSMC chief financial officer Lora Ho told the company’s earnings conference.

TSMC forecast its fourth-quarter revenue at $9.35 billion-$9.45 billion, marginally higher from $9.21 billion a year ago.

TSMC warned the mid-tier smartphone market will shrink this year, but predicted premium smartphones will continue to show a positive growth, helping it ride out the slowdown, as TSMC mainly serves the high-end segment.

Solid demand for Apple’s new iPhone models, estimated from contract electronics maker Foxconn’s revenues for September, will also support TSMC’s growth in the fourth quarter, a crucial year-end holiday season for smartphone makers.

TSMC reported July-September profit of T$89.07 billion or $2.9 billion. TSMC revenue rose 1.9 percent to $8.49 billion in Q3 2018.

ASML Holding, a supplier to TSMC, posted better-than-expected Q3 results and gave a bullish outlook on Wednesday.