Taiwan Semiconductor to expand capacities

TSMC expects continued recovery in the automotive segment to maintain demand momentum.

Autocar Pro News Desk By Autocar Pro News Desk calendar 15 Jan 2022 Views icon6640 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp

One of the world’s largest semiconductor manufacturer, Taiwan Semiconductor Manufacturing (TSMC) expects to the 2022 capital budget to be between US$40 -44 billion to expand capacity. The move is directed towards meeting rising demand for advanced chips across industries from automobiles to consumers goods.

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

Based on the Company’s current business outlook, the management expects revenue in the first quarter of CY2022 to be between  $16.6-17.2 billion and operating profit margin is expected to be between 42- 44%.

Meanwhile Construction of Japan Advanced Semiconductor Manufacturing (JASM) in Japan, where  Sony Semiconductor Solutions will be a minority shareholder is scheduled to begin in this year with production targeted to begin by the end of 2024. The fab is expected to have a monthly production capacity of 45,000 12-inch wafers.

Advanced chips made by TSMC, or the Taiwan Semiconductor Manufacturing Co, are used across a gamut of industries from high-end smartphones cars, in products using artificial intelligence and a wide variety of lower-end consumer goods.

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