World’s largest manufacturer: chip demand brings TSMC record business

The world’s largest chip manufacturer TSMC achieved more sales and profits than expected in the final quarter thanks to the enormous demand for semiconductor components. TSMC generated a record surplus of more than 166 billion Taiwanese dollars (around 5.3 billion euros) from October to December, as the group announced in Hsinchu on Thursday. That was 16.4 percent more than a year earlier. Analysts had expected a little less on average. Sales grew by a good fifth to 438 billion Taiwanese dollars, which was also a record.

For the first quarter that has just started, the group expects demand to remain high, which will be supported, among other things, by the ongoing recovery in the automotive segment. With its sales forecast for the start of the year, the group also exceeded market expectations: TSMC forecast sales of 16.6 to 17.2 billion US dollars for the first three months, the equivalent of around 459 to 475 billion Taiwanese dollars. The group is aiming for an operating margin of 42 to 44 percent, which was 41.7 percent in the past quarter.

Investing in new capacities

TSMC is the world’s largest contract manufacturer of chips and wafers, the base plates for electronic semiconductors. It is also Asia’s largest company. Customers include the iPhone manufacturer Apple. In order to meet the enormous demand for semiconductor components, TSMC wants to invest a lot of money in new capacities, the group put its investment budget for this year at 40 to 44 billion US dollars. The competitors of Samsung and Globalfoundries are currently investing billions in new machines for chip production. (dpa / mer)

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Lenny Li

I started to play with tech since middle school. Smart phones, laptops and gadgets are all about my life. Besides, I am also a big fan of Star War. May the force be with you!

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