Taiwan's TSMC reports record quarterly profit, will boost chip spending in 2022

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Taiwanese chip firm TSMC expects strong growth to accelerate in coming years due to booming semiconductor demand, as the tech giant 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.Taiwan Semiconductor Manufacturing Co., a major Apple supplier that also has customers such as Qualcomm , posted a 16.4% rise in fourth-quarter profit.

With what it calls a"multi-year industry megatrend" of strong chip demand boosted by new technologies, TSMC raised its compound annual growth rate targets for revenue over the next several years to 15% to 20% from 10% to 15%.Wei shrugged off market concerns about chip oversupply in the coming years and said a substantial increase of"silicon content" in tech gadgets such as electric cars would help TSMC weather market corrections.

 

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