(Bloomberg) – Taiwan Semiconductor Manufacturing Co. will invest as much as $ 28 billion this year, an enormous increase, with the aim of expanding its technology leadership and building an Arizona facility to serve local customers. Major American
Funding expenditures for 2021 are aimed at $ 25 billion to $ 28 billion, compared with $ 17.2 billion a year earlier.About 80% of the expenditures will be devoted to advanced processor technology, suggesting TSMC. The state-of-the-art chipmaking business Intel Corp., announced Wednesday, is said to be considering abandoning the tradition and hiring production from TSMC.
The world̵7;s largest chipmaker expected revenue of $ 12.7 billion to $ 13 billion in the quarter, ahead of an average analyst estimate of $ 12.4 billion. That will boost the teen sales growth this year, although it is about half the increase in 2020.
The sheer size of TSMC’s projected budget – more than half of the projected revenues for the year – underscores TSMC’s commitment to maintaining its leadership and sourcing the largest American customer from Apple Inc. At 52% of projected revenue in 2021, the chipmaker’s planned spending will be the sixth highest among all companies worth more than $ 10 billion, according to data compiled by Bloomberg. The pay may add to the pressure on Intel, whose budget for 2020 is estimated at $ 14.5 billion.
What Bloomberg Industries Says:
TSMC’s $ 28 billion investment target for 2021 was 50% more than investors expected, and it was the management’s strong vote on demand for smartphones and high-performance computing (HPC) chips among the other three. Next year The capital expenditure target shows sales in 2021 could rise to $ 56 billion, 4% higher than my estimate of 54 billion, assuming a 50% capital expenditure concentration.
– Charles Shum, analyst
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Net income for the quarter ended December rose 23 percent to TWD 142.8 billion ($ 5.1 billion), compared with an average analyst estimate of T $ 137.2 billion, the chipmaker said Thursday. That resulted in a 50% increase in full-year profit, the fastest growth rate since 2010. Sales in the December quarter rose 14% to a record of T $ 361.5 billion, according to the monthly figures released earlier. This saved in part from strong demand for Apple’s new 5G iPhones.
Read more: As the Battle of Chip Rivals TSMC comes in for slaughter: Tim Culpan
TSMC shares fell on Thursday before earnings, subtracting a 10-day rally, which brought the stock to a record high.Supplier ASML Holding NV rose as much as 4 percent on Thursday.
The fourth-quarter results showed increased contributions from TSMC’s most advanced 5nm manufacturing technology, used in the production of Apple’s A14 chips, which accounted for about 20% of total revenue in Apple’s A14 chip. This quarter, which is more than doubled its share from the previous three months, while 7nm accounted for 29%, according to the segment.TSMC’s smartphone business contributed around 51% of revenue, while HPC stood at 31. %
Because rival United Microelectronics Corp. fell behind and Semiconductor Manufacturing International Corp. fights American sanctions, TSMC’s key role is likely to expand in 2021. The companies have been competing to meet demand from increasingly high volumes of electronic customers, making a severe shortage. Automotive chips that have forced companies such as Honda Motor Co. and Volkswagen AG to cut production.
TSMC said the auto industry has “softened” since 2018 and demand has begun to recover in the fourth quarter.The company is working with automotive customers to address capacity supply issues, Chief Executive Officer CC Wei said, although he did not. Elaborate on when the bottlenecks that force automakers to cut production can be solved.
Read more: Missing Chips Snarl Car Production at Factory Worldwide
Executives did not report on a possible order from Intel on Thursday, saying they did not speak to specific customers. The Santa Clara, California-based chipmaker has spoken to the Asian firm after a suite of technology within the company, a familiar number of people said, although it was unclear if the company would spin after the new CEO appointment.
Read more: Intel talks to TSMC, Samsung to hire some chip manufacturing
Construction of the $ 12 billion facility in the southwestern U.S. state of Arizona will begin this year, the management reiterated without specifying how much the planned budget will be allocated for the year to the project. The plant will be completed by 2024 with an initial target of 20,000 wafers per month, although the company expects there will be a “Large production facility” in the long run, said President Mark Liu.
Although TSMC is growing, foundries such as TSMC, UMC and Globalfoundries Inc. have not expanded fast enough to meet the rapidly growing demand for gadgetry. These bottlenecks make the circulation of chips not only Not only for cars but also Xboxes and PlayStations and even some iPhones as well, TSMC is the most advanced foundry responsible for building a vital part of the world’s semiconductors, providing services such as Qualcomm and NXP Semiconductors NV, which supply the industry in hand. Hold and car
(Adds a comparison of TSMC’s Capital Plan with its peers in fourth paragraph)
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