Leading chip firm Taiwan Semiconductor Manufacturing Co Ltd (TSMC), has announced a 16.4% rise in quarterly profit to a record USD 6.01 billion, thanks to global demand for semiconductors used in smartphones, laptops and other devices during the COVID-19 pandemic.
Record profits
TSMC, one of the world’s largest contract chipmakers and a major supplier of Apple and AMD, stated that its net profit for October-December, rose to USD 6.01 billion from USD 5.1 billion a year earlier. Revenue for the quarter climbed 24.1% to USD 15.74 billion.
Global chip shortage
The global chip shortage has forced car manufacturers and electronics producers to slow production and some are investigating creating their own chips to alleviate the crisis. The Taiwanese company, often listed as one of Asia’s most valuable firms, stated that chip supplies will remain limited due to pandemic-driven demand.
In 2021, TSMC announced a USD 100 billion expansion plan over the coming years, as new technologies such as fifth-generation (5G) telecommunications technology and artificial intelligence applications also drive chip demand.
