Taiwan Semiconductor Manufacturing Co Ltd (TSMC) on Thursday reported a 19.4% rise in first-quarter profit, beating market expectations, on strong chip demand amid a global shift to remote work. The company also said it’s doing everything possible to increase productivity and alleviate a worldwide chip shortage, but that tight supplies will likely continue into next year.
“We have acquired land and equipment, and started the construction of new facilities. We are hiring thousands of employees and expanding our capacity at multiple sites,” Chief Executive Officer C. C. Wei told an online earnings briefing.
TSMC, whose clients include Apple Inc and Qualcomm Inc, had already flagged “multiple years of growth opportunities” as the COVID-19 pandemic fuelled demand for advanced chips to power devices such as smartphones and laptops.
On Thursday, TSMC said it expects the chip shortage for its auto clients to be greatly reduced from the next quarter.
TSMC’s net profit for January-March hit T$139.7 billion ($4.93 billion), versus the T$134.01 billion average of 22 analyst estimates compiled by Refinitiv. Revenue rose 25.4% to a record $12.92 billion, in line with the company’s earlier estimated range of $12.7 billion to $13 billion.
MacDailyNews Note: TSMC earlier this month announced plans to invest $100 billion over 3 years to meet chip demand.
