TSMC records 19% Q1 profit growth, believes chip shortage will last into 2022

Earlier today (15th April 2021), TSMC (Taiwan Semiconductor Manufacturing Co Ltd) said that it is working on increasing its productivity to help ease the shortage of semiconductors across the globe. But, due to tight supply, the shortage is expected to continue into the next year.


According to a Reuters report, the company made the announcement of expanding its capacity and working on keeping prices reasonable at an earnings briefing. In this report, the world’s largest contract chip maker marked a rise of 19.4 percent of its profits in the first quarter of this year. This figure was higher than previous estimates and is likely due to the strong chip demand, which is due to a shift of remote working and online education. TSMC’s net profit for Q1 2021 was 139.7 billion Yuan (roughly 4.93 billion US Dollars).

The firm also added that it has already flagged “multiple years of growth opportunities” as the coronavirus pandemic drove the demand up for advanced chips to power devices like smartphones and laptops. Initially, the company’s business surged by the chip shortage that had impacted the automobile industry, which forced them to cut production, but now, the shortage is also affecting other markets like smartphones, laptops, and even home appliances and other consumer electronic products.

TSMC

Furthermore, TSMC stated that the chip shortage that is affecting its automaking clients at the moment will be greatly reduced from the next quarter. The company’s vice president and CFO Wendell Huang added that “Our first-quarter business was supported by HPC-related demand, balanced by a milder smartphone seasonality than in recent years. Moving into second quarter 2021, we expect our revenue to be flattish, as HPC-related demand will continue to grow, offset by smartphone seasonality.”

RELATED:

ALWAYS BE THE FIRST TO KNOW – FOLLOW US!

Via: gizmochina.com

Share with friends:

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit