TSMC, one of the largest chip makers in the world, has reported its quarterly profits today, which beat analyst expectations with record-high profits. TSMC reported a year-on-year revenue growth of 24.1%, while the net profit rose to $6.01 billion from around $5.1 billion a year earlier.
TSMC (Taiwan Semiconductor Manufacturing Company) reported record-high profits from last year’s holiday quarter (via Reuters), running from October to December 2021. TSMC shares have also gone up by about 7% this year alone, boosting the manufacturer’s market value to $616 billion.
TSMC supplies silicon for companies such as Apple, Qualcomm, Samsung, Intel, and many more tech giants, and it’s planning on spending $40-44 billion in 2022 alone to increase its manufacturing capacity and meet with high demands from the likes of Apple and Intel. We also recently reported that Intel wanted to partner up with TSMC to avoid delays due to Apple 3nm chips. We also recently reported that TSMC might help out with manufacturing Snapdragon 8 Gen 1 chips as Samsung had some production issues.
TSMC has been working with even more companies in recent times to diversify its portfolio and reduce its dependence on Apple’s business alone and the A and the new M-series of chips. The company has already started producing 3nm chips, although the process is currently in a pilot program, and it’s not yet ready to be used by partners such as Apple, Qualcomm, and Intel.
Chief Executive C. C. Wel said that it’s not too concerned about oversupplying chips as car manufacturers will rely on TSMC’s processes to develop and supply them to future vehicles.
“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.”