TSMC enters highest quarterly profit, sees record revenue and capital expenditure

TAIPEI (Reuters) – Taiwan Semiconductor Manufacturing Company Limited (TSMC) is projected to record its best-quarterly profit and deprecated revenue and capital expenditure levels as it forecasts “many years of growth opportunities”.

FILE PHOTO: A logo of Taiwan Semiconductor Manufacturing Company (TSMC) was seen at its headquarters in Hsinchu, Taiwan on August 31, 2018. REUTERS / Tyrone Siu

Working as the world’s top contract chipmaker is rapidly growing as demand for advanced chips for remote-to-power premium devices due to the coronavirus virus epidemic – 5G technology and continuing demand as artificial intelligence applications more widely Is adopted.

TSMC now expects to raise advanced bill production and capital expenditure of advanced chips between $ 25 billion to $ 28 billion this year, 60% more than the amount spent in 2020.

It also revised its compound annual growth rate targets for revenue from an earlier estimate of 5% -10% during the period 2020 to 2025.

The demand for chips is so high that manufacturers around the world are raising alarm bells about deficiencies. Many car manufacturers have seen production plans affected by inadequate supply, leading TSMC to see a surge in demand from automakers in the fourth quarter.

“We’re working with our customers to mitigate the impact of the shortfall,” Chief Executive Officer CC V told analysts at an online earnings briefing without elaborating.

Industry officials and analysts say there are several reasons for the shortfall, including Chinese tech giant Huawei Technologies affected by US sanctions, a fire at a chip plant in Japan, a Coronavirus lockdown in Southeast Asia and a strike in France .

More fundamentally, however, under-investment has taken place in 8-inch chip manufacturing plants, mostly owned by Asian firms, meaning that they have accelerated production according to demand for 5G phones, laptops and cars Have struggled for

Partially helped by Apple Inc.’s launch of the iPhone 12, TSMC’s net profit in the fourth quarter of October-December rose 23% to T $ 142.8 billion ($ 5.1 billion), giving the Refinitiv consensus estimate of T $ 135.3 billion. is. Revenue jumped 22% to a record $ 12.68 billion.

TSMC predicted that the first quarter would have a new record of $ 10.3 billion between $ 12.7 billion and $ 13 billion in the same period a year earlier.

Chipmacher’s share price has risen more than 70% in the last 12 months, bringing it to a market value of $ 560.7 billion.

($ 1 = 28.0050 Taiwan dollars)

Reporting by Yimu Lee and Ben Blanchard; Editing by Himani Sarkar and Edwina Gibbs


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