August 9, 2022
TSMC announces chip plant in Japan, indicates ‘tight’ capacity during 2022

TSMC on Thursday announced plans to build a new factory in Japan to satisfy long-term appetite for chips and said, in the near term, tight supplies are likely to continue into 2022 amid rising demand during the COVID-19 pandemic. Is.

TSMC, the world’s largest contract chipmaker and a major supplier to Apple, said it would set up a chip plant in Japan that would use older chipmaking technology, which is currently facing a severe supply crunch due to strong demand from automakers and tech companies. There is a section under the lack of. But production from the plant is likely to start only by the end of 2024.

The company and Taiwan in general have become central in efforts to solve a pandemic-induced global chip shortage that has forced automakers to cut production and hurt makers of smartphones, laptops and consumer devices .

Chief Executive Officer Sisi Wei said at an online earnings briefing, “TSMC is working closely with our customers to plan our capacity and invest in leading-edge and specialty technologies to support their demand. ” quarter.

He said the expansion plan in Japan was pending approval from the company’s board and declined to disclose details such as expenditure and capacity.

TSMC posted a net profit of TWD 156.3 billion (about Rs 41,815 crore) in July-September, significantly higher than the average of TWD 149 billion (about Rs 39,850 crore) of 22 analyst estimates compiled by Refinitiv. This is 13.8 percent higher than the corresponding period last year.

Advanced chips made by TSMC, formally known as Taiwan Semiconductor Manufacturing Company, are used for everything from high-end smartphones like Apple’s newly unveiled 5G iPhone 13 to artificial intelligence, cars and a variety of lower-end smartphones. – Made in end consumer goods.

Wei said TSMC’s capacity will remain “tight” this year and throughout 2022, adding its chip pricing will remain “strategic, not opportunistic, to reverse our value creation.”

“Our third quarter business was primarily supported by strong demand across all four growth platforms,” ​​Chief Financial Officer Wendell Huang said, referring to strong chip demand, including smartphones, cars and the “Internet of Things.” The concept of connecting home appliances to the Internet.

“Looking forward into fourth quarter 2021, we expect our business to be supported by strong demand for our industry-leading 5 nanometer technology.”

The company raised its revenue growth forecast for 2021 to about 24 percent, up from an earlier forecast of 20 percent, citing an “industry megatrend” of strong chip demand.

Wei said the company has entered a period of “high structural growth” and has set a long-term goal of “50 percent more” for its gross margin.

TSMC’s revenue for the quarter grew 22.6 per cent to $14.88 billion (approximately Rs 1,11,615 crore) from the company’s estimated $14.6 billion (approximately Rs 1,09,530 crore) at $14.9 billion (approximately Rs 1,1 crore). conforms to the limit. 11,780 crore).

For the quarter ended December, TSMC estimated revenues of $15.4 billion (approximately Rs 1,15,531 crore) to $15.7 billion (approximately Rs 1,17,780 crore) compared to $12.68 billion (approximately Rs 95,110 crore) in the same period. have put. one year ago.

Shares of TSMC have risen nearly 8.5 percent so far this year, bringing the company’s market value to $526.3 billion (about Rs 39,47,840 crore), more than double that of competitor and client Intel.

They closed up 0.4 percent on Thursday, roughly in line with a 0.2 percent gain in the broader market.

© Thomson Reuters 2021

Leave a Reply

Your email address will not be published.