Image source: Taiwan Semiconductor
Taiwan Semiconductor Manufacturing (TSM), the world's largest semiconductor manufacturer, plans to spend between $25 billion and $28 billion this year to develop advanced technology and increase its overall plant capacity.
According to Bloomberg, TSM will devote upwards of 80% of its capital budget on advanced processor technologies. The company is scheduled to begin construction on a $12 billion plant in Arizona this year, though it did not disclose how much of this year's budget will be allocated to that project.
The company revealed its capital budget outlook on Thursday, along with its fourth-quarter financial report, which shows a 23% increase in net income to NT$142.77 billion for the quarter over the prior year's period, or NT$5.51 per share (US$0.97 per ADR). That brought TSM’s full-year profit to $17.6 billion, a 50% increase from 2019.
Fourth quarter revenue was $12.68 billion, up 22% from the previous year, and full year revenue was $45.51 billion.
TSM, which supplies iPhone and iPad chipsets for Apple, has experienced high demand prompted the growing use of electronics from people attending work and school remotely during the ongoing COVID-19 pandemic.
In a statement accompanying the financial report, Wendell Huang, Vice President and Chief Financial Officer of TSM, said, “Our fourth quarter business was supported by strong demand for our industry-leading 5-nanometer technology, driven by 5G smartphone launches and HPC-related [high performance computing] applications.”
“Moving into the first quarter 2021, we expect our business to be supported by HPC-related demand, recovery in the automotive segment and a milder smartphone seasonality than in recent years,” he said.
For the first quarter of 2021, TSM anticipates revenue in the range of $12.7 billion to $13.0 billion.
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Source: Equities News
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