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TSMC expects more growth

by on13 January 2022

Record quarterly profit

Taiwanese chip outfit TSMC expects robust growth to accelerate due to booming semiconductor demand.

The outfit reported a record quarterly profit and said it plans to spend at least a third more than last year.

Soaring demand for semiconductors used in smartphones, laptops, and other gadgets during the COVID-19 pandemic has led to an acute chip crunch, forcing automakers and electronics manufacturers to cut production but keeping order books full at TSMC and other chipmakers.

TSMC posted a 16.4 per cent rise in fourth-quarter profit.

The company said it expects to lift capital spending to between $40- $44 billion this year. Last year it spent $30 billion.

TSMC announced in 2021 a $100 billion expansion plan over the next few years, as new technologies such as fifth-generation (5G) telecommunications technology and artificial intelligence applications also drive chip demand. read more

Chief Executive C. C. Wei told an online earnings briefing that the company was reaching a period of higher structural growth.

However, Wei said that the capacity to remain tight this year and demand to be sustained in the long term.


Last modified on 13 January 2022
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