Taiwanese chip firm TSMC has reported record profits for the fourth quarter of 2021, surpassing expectations set by analysts. Despite the ongoing chip shortage in mind, the company reported year-on-year revenue growth of 24.1%. The company, which makes Apple’s A-series and M-series chips, has big plans for the coming years.
TSMC saw a 16.4% rise in fourth-quarter profit, 2021
As reported by Reuters, TSMC is anticipating strong growth to occur in the next few years due to increasing semiconductor demand. In fact, the company said it plans to invest at least a third more into its business than it did last year. It expects to lift capital spending to between $40 billion and $44 billion this year, up from $30 billion last year.
With what it calls a “multi-year industry megatrend” of strong chip demand boosted by new technologies, TSMC raised its compound annual growth rate targets for revenue over the next several years to 15%-20% from 10%-15%.
With chip makers struggling to meet increasing demand, some analysts are concerned that when the shortage is eventually over, chipmakers who over-invested and have excess supply will cause prices to fall. However, TSMC is not worried. The company believes that the demand for chips will continue to increase. “Even if a correction were to occur, we believe it could be less volatile for TSMC due to our technology leadership position and the structural megatrend,” CEO CC Wei said.
TSMC has been trying to be less dependent on the Cupertino tech giant, which was responsible for a quarter of its year-on-year growth in 2021. However, as Apple works on completing its two-year transition to Apple Silicon, TSMC will generate more revenue from new chips.
The company has already started pilot production of 3nm chips which could be used in next year’s iPhones and Macs. The benefits of the 3nm process would include higher performance, core count, and power efficiency.