Daily Sabah (Turkey)

TSMC’s Q1 profit up 19% on strong chip demand

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TAIWAN Semiconduc­tor Manufactur­ing Co. Ltd.’s (TSMC) first-quarter profit surged 19.4%, beating market expectatio­ns on strong global chip demand for the world’s top contract chipmaker.

TSMC, whose clients include Apple Inc. and Qualcomm Inc., had already flagged “multiple years of growth opportunit­ies” as the COVID-19 pandemic fuelled demand for advanced chips to power devices such as smartphone­s and laptops.

The Taiwanese company’s business was further boosted by a global shortage of semiconduc­tor chips that initially forced automakers to cut production but is now also hurting manufactur­ers of smartphone­s, laptops and even appliances.

TSMC’s net profit for January-March hit NT$139.7 billion ($4.93 billion), versus the NT$134.01 billion average of 22 analyst estimates compiled by Refinitiv.

Revenue rose 25.4% to a record $12.92 billion, in line with the company’s earlier estimated range of $12.7 billion to $13 billion.

TSMC said this month it plans to invest $100 billion over the next three years to increase capacity at its plants, days after Intel Corp. announced a $20 billion plan to expand its advanced chipmaking capacity.

The Taiwanese company had already flagged a plan to spend $25 billion to $28 billion this year to develop and produce advanced chips.

Analysts are bullish about the company’s massive expansion plan, expecting global demand for advanced chips to surge as fifth-generation telecommun­ications (5G) technology and artificial intelligen­ce applicatio­ns are adopted more widely.

TSMC shares have risen about 16% so far this year and have more than doubled over the past year, giving TSMC a market value of $558 billion, more than twice that of Intel’s and higher than that of South Korean technology giant Samsung Electronic­s Co. Ltd.

 ??  ?? The logo of Taiwan Semiconduc­tor Manufactur­ing Co. (TSMC) is pictured at its headquarte­rs, in Hsinchu, Taiwan, Jan. 19, 2021.
The logo of Taiwan Semiconduc­tor Manufactur­ing Co. (TSMC) is pictured at its headquarte­rs, in Hsinchu, Taiwan, Jan. 19, 2021.

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