Complete order book up TSMC chip Q4 profit up 16.4% according to Reuters

Author: Yimou Lee

TAIPEI (Reuters) – Taiwanese chip maker TSMC posted a record 16.4% quarter-on-quarter gain on Thursday due to global demand for semiconductors used in smartphones, laptops and other gadgets, which led to a reduction in chip supply in the COVID-19 pandemic.

The shortage has forced automakers and electronics manufacturers to cut production, but has kept order books full at TSMC and other chip makers.

Net profit for October-December at Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC), the world’s largest chip maker and largest supplier to Apple Inc. (NASDAQ :), rose to $ 166.2 billion ($ 6.010 billion) from $ 142.8 billion a year earlier .

That was an average of T $ 161.6 billion on average for the 22 analysts compiled by Refinitiv.

Quarterly revenue rose 24.1% to $ 15,740 billion.

The Taiwanese company, the most valuable Asian listed company including customers including Qualcomm (NASDAQ 🙂 Inc., said tight chip supplies are likely to continue this year amid rising pandemic demand.

In response to demand, TSMC announced a $ 100,000 billion expansion plan in 2021 over the next few years, as new technologies such as fifth-generation (5G) telecommunications technologies and artificial intelligence applications also drive chip demand.

“With fully charged casting capacity, TSMC’s near-term demand forecast remains healthy,” analysts at Taipei’s Fubon Research wrote in a note in early January.

TSMC shares have gained about 7% this year, giving them a market value of $ 618 billion. Shares rose 0.15% on Thursday, with a slightly lower 0.3% rise in the broader market.

($ 1 = $ 27.64 $ Taiwan)