Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

TSMC Jumps as Demand Stays Elevated, Chipmaker Boosts Spending

Published 01/13/2022, 11:16 PM
Updated 01/13/2022, 11:16 PM
© Reuters.

© Reuters.

By Dhirendra Tripathi

Investing.com – TSMC stock (NYSE:TSM) jumped 8.7% Thursday as the world’s largest chipmaker laid out an ambitious capital spending plan for 2022 to meet surging demand for its chips.

The company said it expects to lift capital spending to between $40 billion and $44 billion this year as demand for chips that go into mobiles, laptops, cameras and other electronic gadgets refuses to abate. The company spent $30 billion last year and has committed $100 billion in investments over the next few years to set up new plants and expand capacities.

High demand, abetted by shortages in a pandemic-struck world, is seen keeping TSMC’s gross profit margin in the current quarter at 54% at the center of its guidance range. Revenue for January through March is seen at $17.2 billion at the top end of the guidance range. For the year, it expects revenue to grow by 15%-20%.

Chipmakers like TSMC, Samsung (KS:005930) and Nvidia (NASDAQ:NVDA) have had the best of times last two years as the pandemic accelerated demand for digital devices and services, boosting both institutional and retail appetite for laptops and mobiles.

According to Reuters, Chief Executive C. C. Wei expects capacity to remain tight this year and demand to be sustained in the long term.

Revenue in the quarter through December climbed 24% to nearly $16 billion. Net profit rose over 15% to $6 billion. Advanced technologies, defined as 7-nanometer and more advanced technologies, accounted for 50% of total wafer revenue, the company said.  

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.