Taiwan chip company posted a 16.4% rise in quarterly net profit on Thursday. The calculations show, boosted by a semiconductor boom for smartphones and laptops during the COVID-19 pandemic led to a supply shortage of chips.
Net profit for October-December at Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world’s largest contract chipmaker and a primary Apple Inc (AAPL.O) supplier, rose to T$166.2 billion ($6.01 billion) from T$142.8 billion a year earlier. That was higher than the T$161.6 billion average of 22 analyst estimates compiled by Refinitiv.
Those numbers affirm TSMC pole position in the market during an unprecedented chip shortage triggered by the pandemic, a deficit that’s walloped the production of cars, mobile phones, and game consoles. Asia’s most valuable corporation intends to continue spending heavily to maintain its technological lead over Intel Corp. to Samsung Electronics Co., safeguarding its market share as the growing number of connected devices like cars drive data centers and high-end computing.
TSMC has been running at near-full capacity over the past year and is now investing heavily in new fabs from its home island to Japan. The U.S. TSMC 2022 spending target is up at least $10 billion from last year and at least 43% higher than the $25 billion to $28 billion that Intel has set aside this year to regain its once-dominant position in the industry.