World’s largest chipmaker TSMC books record quarterly profit
Taiwan Semiconductor Manufacturing Co Ltd (TSMC), a major Apple supplier and the world’s largest contract chipmaker, announced Thursday a 76.4% increase in profit for the April-June period of 2022, easing concern over a glut of some semiconductor on the market amid weak demand.
The company reported a revenue of 534.14 billion Taiwanese dollars, representing a year over year growth of 43.5%. The new profit came in at 237.03 billion Taiwanese dollars, up 76.4% year-on-year. This is the record quarterly net profit for TSMC.
Despite a record quarter in terms of net profit, TSMC CEO CC Wei said the company is cautious about challenges in the supply chains, as well as a possible chip glut due to weak consumer demand from and high inflation.
Investors and analysts have been worried about a possible chip glut, especially after U.S chipmaker Micron Technology warned a chip shortage in some sector was quickly turning into a glut.
TSMC makes chips for other companies and has some of the most advanced manufacturing processes in the world. The 28-nm node, introduced byTSMC in 2011, begun mass production for smartphones three years later. In August 2015, SMIC announced it was using 28-nm technology to manufacture Snapdragon 410 processors for US chip giant Qualcomm.
In April 2021, TSMC announced it would invest USD100 million over the next three years to increase production capacity at its plants.
The USD100 billion spending for the next three years would be more than double what the company spent in the previous three years, according to New Street Research analyst Pierre Ferragu.