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.