Taiwan chip manufacturer
Thursday posted a 14% increase in net profit in the third quarter of the year, while warning it will continue to operate with tight capacity throughout 2022.
The group, formally known as Taiwan Semiconductor Manufacturing Co, said that it is likely to exceed revenue forecast in the last quarter of the year, boosted by booming demand for semiconductors amid persistent, worldwide shortages.
But the company warned that it will take time before it can help alleviate the current chip shortages inhibiting the global economic recovery.
“We expect TSMC’s capacity to remain very tight in 2021 and throughout 2022,” Chief Executive Officer C.C. Wei was reported by Reuters as saying in a conference call.
Net profit in the three months ended in September rose to T$156.3 billion ($5.56 billion), which was above analysts’ expectations.
The group upgraded its revenue forecast for the end of the year and now expects sales to grow 24% in 2021.
TSMC plans to invest $100 billion to increase production in the next few years, and announced the building of a new plant in Japan.
The company’s chips are used in 5G-equipped smartphones such as Apple’s new iPhone 13.
accounts for about a fourth of TSMC’s revenue, and Bloomberg reported earlier this week that it may have to cut its projected iPhone production targets.
Write to Pierre Briançon at [email protected]