Taiwanese chip giant reports 20% revenue increase as industry struggles to keep up with demand • The Register
Chip giant Taiwan Semiconductor Manufacturing Co reported quarterly revenue of NT $ 372.1 billion ($ 13.3 billion), nearly 20% higher than a year earlier, while the manufacturer struggles to keep up with mountainous demand amid pandemic recovery.
The chip giant releases monthly revenue figures which have been compiled by The register and other outlets, including Bloomberg. TSMC to host second quarter 2021 earnings conference on Thursday next week – July 15th. The company is currently in a quiet period.
TSMC, which is the world’s largest contract chip maker, abandoned its policy of lowering prices (up to 3%) for major customers earlier this year amid continued shortages.
The world is in the grip of a semiconductor shortage due to the COVID-19 pandemic. The squeeze was due to tight supply, caused by lockdowns in China, Taiwan and other parts of the Far East, combined with increased demand for laptops and other work equipment at home.
With the opening of economies, the demand for consumer electronics and the automotive sector has also increased. Daimler AG and Jaguar Land Rover suggested that sales could be affected by the continuing shortage of chips.
Manufacturers like TSMC are investing to meet demand. In May, well over half a trillion dollars of capital has been committed to semiconductor manufacturing, with $ 450 billion from Samsung, around $ 130 billion in massive infrastructure spending from President Biden and an additional $ 100 billion from TSMC.
According to IC Insights analyst, sales of the top 15 semiconductor companies grew 21% year-on-year in the first quarter of 2021. The ranking included six factory-less companies (Qualcomm, Broadcom, Nvidia, MediaTek, AMD and Apple) and TSMC as the only company pure- play cross-country skier.
Meanwhile, New York-based GlobalFoundries is breaking new ground in a new $ 4 billion facility in Singapore that will produce chips for legacy nodes. The company said it expects the facility to be fully operational by the end of 2023 and produce around 450,000 300mm wafers per year. This would bring its total Singapore production to 1.5 million wafers per year.
AMD also announced that it will invest $ 1.6 billion in 12nm and 14nm chips from GlobalFoundries by the end of 2024.
Yet the biggest impact of the ongoing pandemic remains in the chip business in Taiwan. Last month, the world’s leading provider of chip testing services, Taiwan’s King Yuan Electronics (KYEC), suspended production for two days due to an outbreak of COVID-19 among foreign workers at the company. ®