The world’s largest chip manufacturer TSMC achieved more sales and profits than expected thanks to the enormous demand for semiconductor components in the final quarter. 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 today in Hsinchu. That was 16.4 percent more than a year earlier. Analysts had expected slightly less on average. Sales grew by a good fifth to 438 billion Taiwanese dollars, which was also a record.
Continued recovery in the automotive segment
For the first quarter that has just started, the group expects continued high demand, 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 announced 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 targeting 42 to 44 percent for the operating margin, which was 41.7 percent in the last quarter.
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. Among the customers is the iPhone manufacturer Apple. In order to serve the enormous demand for semiconductor components, TSMC intends to invest a lot of money in new capacities. The group has put its investment budget for this year at 40 to 44 billion US dollars. Competitors from Samsung and Globalfoundries are also currently investing billions in new chip manufacturing machines.