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TSMC Posts 45% Quarterly Profit Jump Amid Chip Demand

The company, which also has Apple and Qualcomm as customers, previously said it expected strong growth to accelerate in coming years


TMSC plans to build a $12 billion chip factory in Phoenix Arizona, the WSJ said.
The TSMC logo is seen at its office in Hsinchu on Taiwan. File photo: Reuters.

 

Taiwan Semiconductor Manufacturing Co (TSMC) posted a 45% jump in quarterly net profit on Thursday, boosted by booming chip demand during the Covid-19 pandemic that has led to a global shortage of the critical components.

Net profit for January-March at TSMC, the world’s largest contract chipmaker and a major Apple supplier, rose to NT$202.7 billion ($7 billion) from NT$139.7 billion a year earlier.

That compared with the NT$184.67 billion average of 19 analyst estimates compiled by Refinitiv.

The company, which also has Qualcomm as a customer, has previously said it expected strong growth to accelerate in coming years due to robust demand for chips that power everything from smartphones to cars and lifted capital spending for this year.

TSMC’s revenue for the quarter climbed 36% to $17.57 billion, above the company’s prior estimated range of $16.6 billion to $17.2 billion.

The company has said it expected chip capacity to remain tight this year, a shortage of which has forced automakers and electronics manufacturers to cut production but keeping order books full at TSMC and other chipmakers.

Shares of TSMC have fallen about 6.8% so far this year, giving the firm a market value of $511.1 billion. The stock closed flat on Thursday, compared with a 0.3% fall for the benchmark index.

 

  • Reuters, with additional editing by George Russell

 

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George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.

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