Taiwan Semiconductor Manufacturing Company (TSMC), which makes chips for Apple and Nvidia, just posted a sixth straight quarter of record sales, boosted by increased demand for chips amid a global push for green tech.
TSMC’s revenue for the fourth quarter jumped 21% to roughly $15.8 billion, according to figures unveiled by the company on Monday. This puts its revenue for the whole year at some $57.4 billion, up 26% from $45.5 billion in 2020.
TSMC makes semiconductor chips for anything from smartphones to home appliances and cars. It has been dubbed by many as Asia’s most valuable company working in the sphere, having secured third place in the list of the globe’s largest chip producers by revenue in 2020 (after Intel and Samsung). The company has been increasingly busy this year, with the global chip market hit by never-before-seen demand as car manufacturers push for green technology, which has led to a massive shortage of semiconductors. Currently operating several factories in Taiwan, TSMC recently unveiled plans to set up new manufacturing lines in Japan and Germany.
The company is having a hard time delivering on its surging sales, however, with delivery times increased by six days to about 25.8 weeks in December, research by Susquehanna Financial Group found, as cited by Bloomberg.
Still, according to Goldman Sachs analysts, the firm is set to grow at a faster pace this year than last, “underpinned by price hikes, the ongoing industry upgrade cycle in HPC/5G, and strong demand for cryptocurrency,” with the latter also keen on using semiconductor chips for crypto mining.
Analysts predict a 26% sales growth for TSMC in 2022. The chipmaker’s shares gained 1.4% on Monday.
iPhone maker Apple is currently TSMC’s biggest client, accounting for a quarter of the chipmaker’s revenue in 2020, according to reports. The company’s other customers include MediaTek, AMD, Qualcomm, Nvidia, Sony and Marvell.
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