Strong demand for 5nm chips sees TSMC deliver solid Q4 results | ZDNet


Taiwan Semiconductor Manufacturing Company (TSMC) has announced that strong demand for its 5nm chips contributed to a 21% year-on-year revenue increase to NT$438 billion — $16 billion — during the 2021 fourth quarter.

Net profit for the period ending 31 December was NT$166 billion, up 16% year-on-year.

Shipments of 5nm accounted for 23% of total revenue, an increase from the 18% in the previous quarter, while 7nm accounted for 27%, which is seven percentage points lower than 3Q21. Meanwhile, advanced technologies, defined as 7nm and below, accounted for 50% of total revenue.

The company also broke the Q4 revenue results down by platform, which showed smartphone and high-performance computing represented 44% and 37% of net revenue respectively, while IoT, automotive each represented 9% and 4%, and it was 3% each for digital consumer electronics and others.

“Our fourth quarter business was supported by strong demand for our industry-leading 5-nanometer technology,” TSMC VP and CFO Wendell Huang said.

The North American market continued to contribute two-thirds of TSMC’s total revenue, followed by Asia Pacific and China each at 12%, and then Europe, Middle East, and Africa and Japan each at 5%.

The fourth results helped the chip maker giant wrap 2021 on a high, despite ongoing challenges surrounding current global chip shortage.

On a full-year basis, total revenue was NT$1.59 trillion, or $57 billion, and net profit was NT$596.5 billion.

Revenue from 7nm chips still made up the biggest portion of full-year revenue accounting for 31%, despite a two percentage point year-on-year decline. This was followed by 5nm which contributed 19%, more than double than what was reported in 2020. Advanced technologies accounted for 50%, up from 41% in 2020.

Looking ahead, the Taiwanese chip maker said it expects revenue to land somewhere between $16.6 billion and $17.2 billion for first quarter of 2022, while capital budget for the new financial year to be between $40 billion and $44 billion.

It added that gross margin is expected to be between 53% and 55% and operating profit margin between 42% and 44% for the first quarter 2022.

“Moving into first quarter 2022, we expect our business to be supported by HPC-related demand, continued recovery in the automotive segment, and a milder smartphone seasonality than in recent years,” Huang said.

TSMC announced last year plans to spend $100 billion over three years to boost semiconductor capacity. It also signed a $7 billion deal with Sony to build a new fab in Japan, with the goal of mass-producing chips in that facility by 2024.

Related Coverage 

Original Article

Disclaimer : is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us – The content will be deleted within 24 hours.


Please enter your comment!
Please enter your name here