Apple chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) has announced record revenues for the first fiscal quarter of 2022 despite facing multiple challenges involving COVID lockdowns and the ongoing component shortage. The company reported revenue of $17 billion for the quarter, a 35% year-over-year increase from 2021.
TSMC reports record Q1 revenue despite facing challenges due to coronavirus
TSMC today released a one-page revenue report for the first quarter of 2022:
TSMC (TWSE: 2330, NYSE: TSM) today announced its net revenue for March 2022: On a consolidated basis, revenue for March 2022 was approximately NT$171.97 billion, an increase of 17.0 percent from February 2022 and an increase of 33.2 percent from March 2021. Revenue for January through March 2022 totaled NT$491.08 billion, an increase of 35.5 percent compared to the same period in 2021.
The chipmaker’s revenues reached 491.1 billion New Taiwan dollars in the quarter, while analysts had estimated that it would report 469.4 billion in revenue.
Bloomberg notes that the chipmaker continued to workaround lockdowns in China by rearranging production to adjust to the local pandemic policy. In late March, the company said that it plans to rearrange production to accommodate a shift in demand caused by the ongoing global health crisis.
TSMC has kept production running in China, even as many other factories suspended operations to cope with the local pandemic policy. The chip assembler said in end-March that it will rearrange production priorities to deal with a shift in demand caused by Covid restrictions in Shanghai and Shenzhen. TSMC wasn’t planning to revise down its sales and capital spending forecasts for 2022, Chairman Mark Liu said at the time.
TSMC chairman Mark Liu recently said that consumer demand in emerging areas “such as smartphones, PCs, and TVs,” is starting to slow due to geopolitical uncertainties and COVID-related lockdowns in China. However, one of its biggest customers Apple is still experiencing strong sales of its devices. Despite the uncertainties in the market this year, TSMC affirmed that it would not be changing its growth target and capital expenditure this year.
The chipmaker also previously warned that the ongoing semiconductor shortage could lead to a hike in production costs for the entire industry. The company said that those price increases would translate into a price bump for consumers.