TAIPEI -Taiwan's TSMC posted a 76.4% surge in second-quarter profit on Thursday, the biggest jump in earnings in eight quarters that handily beat market estimates, thanks to red-hot demand for its chips amid a two-year long global shortage.

Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world's largest contract chipmaker and a major Apple Inc supplier, said net profit for April-June rose to a record T$237.0 billion ($7.94 billion).

That beat an average T$219.13 billion estimate from 19 analysts compiled by Refinitiv.

The strong results underscore demand for Apple's iPhone 13 that continues to sell well despite record global inflation and worries of a looming recession, as well as solid sales of high performance computing (HPC) chips used in 5G networks and artificial intelligence.

Some chipmakers including Micron Technology Inc have recently said the tight chip market has given way to a glut in a matter of weeks, following two years of huge pandemic-fuelled sales of phones and laptops that caused a crisis.

The shortage had also hurt global automakers that were forced to cut production.

TSMC, whose clients also include chip majors such as Qualcomm Inc, said in April that its chip capacity would remain tight this year.

Revenue for the quarter climbed 36.6% to $18.16 billion, higher than its previous estimated range of between $17.6 billion and $18.2 billion.

Shares of TSMC have fallen about 23% so far this year, giving the firm a market value of $408.3 billion. The stock rose 1% on Thursday, compared with a 0.8% gain for the benchmark index.

  - Reuters