The Taiwan based semiconductor making company Taiwan Semiconductor Manufacturing Co Ltd (TSMC) said that the tight supplies of chips will likely continue into next year but it is doing all it can to enhance its productivity and take all measures to reduce the global chip shortage.
Its capacity is being increased and the company is working to keep pricing reasonable, said the biggest contract chipmaker of the world said at an earnings briefing during which it reported a 19.4 per cent growth in the first quarter profits which beat market expectations because of strong demand for its chips at a time when there is a shift to working from home globally.
With the Covid-19 pandemic has driven up demand for advanced chips that power devices such as smartphones and laptops, a prediction for “multiple years of growth opportunities” had already been made by TSMC which has clients such as Apple Inc and Qualcomm Inc.
The chip shortage globally, which had initially forced global auto companies to cut down on production, had boosted by the chip shortage. That shortage has now transcended the auto sector and is hitting manufacturers of smartphones, laptops and even household appliances.
Starting from next quarter, TSMC expects that the chip shortage for its clients in the auto sector will be significantly recued, the company said on Thursday.
“Our first-quarter business was supported by HPC-related demand, balanced by a milder smartphone seasonality than in recent years,” said Vice President and Chief Financial Officer Wendell Huang, referring to high performance chips.
“Moving into second quarter 2021, we expect our revenue to be flattish, as HPC-related demand will continue to grow, offset by smartphone seasonality.”
For the January-March quarter, the net profit of TSMC bit T$139.7 billion ($4.93 billion) compared to the average estimates of 22 analyst estimates compiled by Refinitiv of T$134.01 billion.
The company also increased by 25.4 per cent to reach a record $12.92 billion which was in line with the previous forecast of the company of revenues to be in the range of $12.7 billion to $13 billion.
TSMC also forecast revenues for the second quarter to be in the range of $12.9 billion to $13.2 billion while it was $10.38 billion in the same period last year. The company also raised its forecast for revenue growth for the current year to about 20 per cent compared to its previous estimate of it being in the mid-teens percentage.
In order to increase its capacity at its plant, an investment of $100 billion over the next three years was announced earlier this month by TSMC. A few days ago TSMC’s rival Intel Corp had announced its plan to invest $20 billion for expansion of its capacity for making advanced chips.
“Stronger engagement with more customers” on the most advanced 5 nanometer node technology of the company as well as the upcoming 3 nanometer node for which the company will start its risk production phase later this year were the main drivers of the massive investment planned by the company, said Chief Executive Officer C. C. Wei.
(Source:www.expertnews.com)
Its capacity is being increased and the company is working to keep pricing reasonable, said the biggest contract chipmaker of the world said at an earnings briefing during which it reported a 19.4 per cent growth in the first quarter profits which beat market expectations because of strong demand for its chips at a time when there is a shift to working from home globally.
With the Covid-19 pandemic has driven up demand for advanced chips that power devices such as smartphones and laptops, a prediction for “multiple years of growth opportunities” had already been made by TSMC which has clients such as Apple Inc and Qualcomm Inc.
The chip shortage globally, which had initially forced global auto companies to cut down on production, had boosted by the chip shortage. That shortage has now transcended the auto sector and is hitting manufacturers of smartphones, laptops and even household appliances.
Starting from next quarter, TSMC expects that the chip shortage for its clients in the auto sector will be significantly recued, the company said on Thursday.
“Our first-quarter business was supported by HPC-related demand, balanced by a milder smartphone seasonality than in recent years,” said Vice President and Chief Financial Officer Wendell Huang, referring to high performance chips.
“Moving into second quarter 2021, we expect our revenue to be flattish, as HPC-related demand will continue to grow, offset by smartphone seasonality.”
For the January-March quarter, the net profit of TSMC bit T$139.7 billion ($4.93 billion) compared to the average estimates of 22 analyst estimates compiled by Refinitiv of T$134.01 billion.
The company also increased by 25.4 per cent to reach a record $12.92 billion which was in line with the previous forecast of the company of revenues to be in the range of $12.7 billion to $13 billion.
TSMC also forecast revenues for the second quarter to be in the range of $12.9 billion to $13.2 billion while it was $10.38 billion in the same period last year. The company also raised its forecast for revenue growth for the current year to about 20 per cent compared to its previous estimate of it being in the mid-teens percentage.
In order to increase its capacity at its plant, an investment of $100 billion over the next three years was announced earlier this month by TSMC. A few days ago TSMC’s rival Intel Corp had announced its plan to invest $20 billion for expansion of its capacity for making advanced chips.
“Stronger engagement with more customers” on the most advanced 5 nanometer node technology of the company as well as the upcoming 3 nanometer node for which the company will start its risk production phase later this year were the main drivers of the massive investment planned by the company, said Chief Executive Officer C. C. Wei.
(Source:www.expertnews.com)
