Taiwan’s DSMC has reported first quarter earnings
Taiwanese technology company TSMC on Thursday reported record earnings in the first three months of the year as demand for chips used in everything from smartphones and cars to missiles increased.
Taiwan Semiconductor Manufacturing Company (TSMC) operates the world’s largest silicon wafer factories and manufactures some advanced microchips.
According to the company, its first-quarter revenue rose 36 percent and 12 percent, respectively, to a record Tw $ 491.1 billion (US $ 17.6 billion).
This represents a 45 percent increase in annual profits to $ 202.7 billion for the January-March period.
This is an increase of 22 percent from the fourth quarter of 2021.
CEO CC Wei said, “First-quarter earnings are higher than the high level of our guidance, due to better demand for smartphone and vehicle-related applications than we predicted three months ago.”
At an investor conference in January, TSMC Q1 sales were projected to be between Tw $ 458.16 billion and Tw $ 474.72 billion.
Smartphone and high performance computer (HPC) accounted for 40 percent and 41 percent of net revenue, respectively, while automotive represented five percent in the first three months, company figures show.
Revenue from both HPC and Automotive increased 26 percent during the period from the fourth quarter of 2021.
The global chip shortage filled with corona virus infection has not abated and the waiting time for semiconductor delivery is said to have grown again in March due to China’s severe coward lock.
“As the second quarter moves to 2022, we expect our business to be supported by HPC and vehicle-related requirements, which will be partially offset by the smartphone season,” Wei said.
Wendell Huang, chief financial officer, said TSMC forecasts its revenue for the April-June period to be between $ 17.6 billion and $ 18.2 billion.
“Despite the production cost challenges … we continue to believe that the long-term growth threshold will be 53 per cent and above,” he added.
<div class="article-main__explore my-4 d-print-none"> <a class="text-medium text-info mt-2 d-inline-block" href="https://phys.org/news/2015-07-tsmc-q2-profit-growth-weaker.html">TSMC Q2 profit growth slows to weak sales</a> </div> <hr class="mb-4"/> <p class="article-main__note mt-4"> © 2022 AFP <!-- print only --> <div class="d-none d-print-block"> <strong>Quote</strong>: Taiwan's TSMC Report First Quarter Revenue (2022, April 14) Retrieved 14 April 2022 at https://techxplore.com/news/2022-04-taiwan-tsmc-first-quarter-revenue.html This document is subject to copyright. No part may be reproduced without written permission, except for any reasonable manipulation for the purpose of personal study or research. Content is provided for informational purposes only. </div> </div>https://connect.facebook.net/en_US/sdk.js</p>