TSMC profits hit record high amid chip supply shortages
Semiconductor chip supply may be experiencing a worldwide shortage, but that hasn't stopped TSMC from hitting a record high in its net profit from Q4 last year.
According to a report released on Thursday by Taiwan Semiconductor Manufacturing Co, the company managed to rake in a whopping 16.4% increase in its overall profit between the months of October and December of 2021, as compared to the same quarter in 2020.
To put that in numbers, TSMC's net profit clocked in at exactly $6.01 billion in total, while the net revenue rose by 24.1% to a whopping $15.74 billion.
All this comes amidst massive chip shortages which have been affecting the technology market on multiple levels.
Semiconductor chips are required for the production of so much of modern-day technology, from laptops and phones to automobiles, gaming consoles (yes, including the PS5), home appliances, medical equipment, and the list goes on.
The mass demand for these tiny chips has ensured that the Taiwanese manufacturer has been fully booked for months, even years ahead, as Reuters reports, even while automakers and other electronics manufacturers have had to cut production due to the chip shortage.
Even the iPhone 13 didn't remain untouched, as customers of the latest flagship were left waiting for weeks longer than usual to receive their orders.
After surpassing Tencent last fall, TSMC has since become the most profitable company in Asia, valued at $618 billion, as it services top-level clients such as AMD, Qualcomm, and Apple—who has reportedly contracted TSMC for its future iPhone 5G modem chip production.
Fubon Research analysts from Taipei reported a few days prior that "With fully-loaded foundry capacity, TSMC’s near-term order outlook remains healthy." TSMC's Chief Executive Officer C. C. Wei echoed the positive sentiment by stating on Thursday, alongside the earnings report, that TSMC is entering “a period of higher structural growth."
Although TSMC is the biggest semiconductor manufacturer in the world, rivaling chipmakers such as MediaTek, Qualcomm, and Foxconn are reporting similar market successes over the past few months, as demand continues to be greater than supply.
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