Tha Taiwan Semiconductor Manufacturing Co. expects to spend as much as $ 28 billion this year to expand their technical leadership and build a plant in Arizona to serve America’s major customers.
Capital spending for 2021 is targeted at $ 25 billion to $ 28 billion, compared to $ 17.2 billion the previous year, Chief Financial Officer Wendell Huang said on a conference call. About 80% of the cost will be spent on advanced processing technologies – i.e. 3nm, 5nm and 7nm – suggesting that TSMC intends to grow in industry for modern chip making. Intel Corp., which announced a new CEO Wednesday, is said to be considering moving away from heritage and outsourcing to the likes of TSMC.
The Asian giant expects revenues of $ 12.7 billion to $ 13 billion in this quarter, driving mid-teen sales growth this year.
TSMC’s projected budget size – more than half the expected revenue for the year – reflects TSMC’s determination to maintain its leadership and serve its largest American clients. greater. Shares of the world’s largest contract maker have risen more than 70% since the start of 2020, with investors betting that Apple Inc. will continue. continuing the expanding technology direction Samsung Electronics Co. The company has grown into a lynchpin in a plethora of segments including consumer electronics and automation, with its chips powering everything from iPhones to refrigerators and cars.
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TSMC’s $ 28 billion capital investment target for 2021 is 50% higher than investors expected, and comes to a strong regulatory vote in demand for smartphones and high-performance computing (HPC) chips across all three next year. The capital spending target means 2021 sales could jump to $ 56 billion, 4% higher than the $ 54 billion consensus expected, assuming a capital spending intensity of 50%.
– Charles Shum, analyst
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Net revenue in the quarter ended December 23% to NT $ 142.8 billion ($ 5.1 billion), compared to analyst estimates averaged NT $ 137.2 billion, the chipmaker said Thursday. That contributed to a 50% increase in full-year profit, the fastest expansion rate since 2010. Sales in the fourth quarter of December climbed 14% to NT $ 361.5 billion, according to previously published monthly figures, partly aided by demand strong for Apple ‘s new 5G IPhones.
Read more: As Chip Rivals fight, TSMC goes in for the kill: Tim Culpan
TSMC shares flew back Thursday before earnings results came, carving a 10-day rally that lifted its stock to its peak. Provider ASML Holding NV jumped as much as 4% in early trading on Thursday.
Fourth-quarter results showed growing offerings from TSMC’s most advanced 5-nanometer process technology – used to make Apple’s A14 chips. That accounted for about 20% of total revenue in the quarter, more than doubling its share from the previous three months, and 7nm represented 29%. According to industry segment, TSMC smartphone industry accounted for about 51% of revenue, while HPC accounted for 31%.
TSMC 4Q Revenue by Technology
As competitors like United Microelectronics Corp. falling late and Tha Semiconductor Manufacturing International Corp. struggling with American sanctions, TSMC’s key role is likely to expand in 2021. The company has been racing to meet demand from larger electronics clients, exacerbated by a severe shortage of car chips that on such companies Honda Motor Co. and Volkswagen AG to prevent production.
TSMC said the car industry had been “soft” since 2018 and demand had only begun to recover in the fourth quarter. The company is working with the buyers of their cars to address the capacity supply issues, Chief Executive CC Wei said, although he did not explain when the bottles made by manufacturers cars make cuts.
Read more: Production of Snarl Chips Wanted at Factories worldwide
Executives did not speak to reports of possible orders from Intel on Thursday, saying they will not discuss specific customers. California-based chipmaker Santa Clara has held talks with the Asian company after a series of in-house technologies, experts have said, although it is unclear whether the company can pivot out after the Appoint a new chief executive.
Read more: Intel Talks With TSMC, Samsung to Outsource Some Chip Production
Officials reaffirmed that planned $ 12 billion raise A plant in the southwestern U.S. state of Arizona will begin this year. The factory will be ready by 2024, with an initial target output of 20,000 wafers per month, although the company expects to have a “mega scale production site” in the long run, Chairman Mark Liu said.
Even as TSMC grows, there will be furnaces like TSMC, UMC and Globalfoundries Inc. is not. expanding fast enough to meet the disease-induced spike in demand for machinery. These bottles spanned streaming chips not only to cars, but also Xboxes and PlayStations and even special iPhones. TSMC is the most advanced of the furnaces which are responsible for making much of the world’s semifinals, serving such Qualcomm Inc. and NXP Semiconductors NV, which also caters to the mobile and automotive industries.
– Supported by Vlad Savov
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