Taiwanese chip giant TSMC posted a 16.4% rise in quarterly profit on the back of heightened global demand for semiconductors with the Coronavirus induced COVID-19 pandemic driving up demand for chips creating a supply crunch.
Although the global chip crunch has forced automakers and electronics manufacturers to cut production TSMC managed to keep its order books full.
For the October to December period, TSMC posted a net profit of $6.01 billion (T$166.2 billion) up from T$142.8 billion a year earlier; this is higher than analysts estimates’ of T$161.6 billion.
Revenue for this quarter climbed by 24.1% to $15.74 billion.
Providing an outlook on the global chip crunch, TSMC, Asia’s most valuable listed company, said demand for chips is likely to continue this year midst booming demand.
To meet that demand, in 2021 TSMC had announced a $100 billion expansion plan over the next few years, as new technologies such as fifth-generation (5G) telecommunications technology and artificial intelligence applications are also driving up demand for chips.
“With fully-loaded foundry capacity, TSMC’s near-term order outlook remains healthy,” said analysts at Taipei-based Fubon Research.
TSMC shares have risen by about 7% so far this year, giving it a market value of $618 billion.
The stock closed up 0.15% on Thursday, slightly underperforming the broader market which closed up 0.33%.
($1 = 27.6470 Taiwan dollars)