FILE PHOTO: The logo of Taiwan Semiconductor Manufacturing Co (TSMC) is pictured at its headquarters, in Hsinchu, Taiwan, January 19, 2021. REUTERS/Ann Wang/File Photo
January 13, 2022
By Yimou Lee
TAIPEI (Reuters) – Taiwan chip firm TSMC posted on Thursday a 16.4% rise in quarterly profit to a record, thanks to global demand for semiconductors used in smartphones, laptops and other gadgets during the COVID-19 pandemic that drove a chip supply crunch.
The shortage has forced automakers and electronics manufacturers to cut production but has kept order books full at TSMC and other chipmakers.
Net profit for October-December at Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world’s largest contract chipmaker and a major Apple Inc supplier, rose to T$166.2 billion ($6.01 billion) from T$142.8 billion a year earlier.
That was higher than the T$161.6 billion average of 22 analyst estimates compiled by Refinitiv.
Revenue for the quarter climbed 24.1% to $15.74 billion.
The Taiwanese company, Asia’s most valuable listed firm with clients including Qualcomm Inc, has said tight chip supplies will likely continue this year amid booming demand during the pandemic.
To meet the demand, TSMC in 2021 announced 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.
“With fully-loaded foundry capacity, TSMC’s near-term order outlook remains healthy,” analysts at Taipei-based Fubon Research wrote in a note in early January.
TSMC shares have gained about 7% so far this year, giving it a market value of $618 billion. The stock closed up 0.15% on Thursday, slightly underperforming the broader market which closed up 0.33%.
($1 = 27.6470 Taiwan dollars)
(Reporting By Yimou Lee, Sarah Wu and Ben Blanchard; Editing by Muralikumar Anantharaman)
Source: One America News Network
