Taiwan Semiconductor Manufacturing Company Ltd., which supplies chips to the likes of Apple, Inc. and Tesla, Inc., is purportedly weathering external risks fairly well and is confident of seeing strong growth in 2022.
TSM expects revenue growth to accelerate from 24.9 percent in 2021 to 30 percent in 2022, the foundry’s chairman Mark Liu said at the annual shareholder meeting, Bloomberg reports.
The company also reiterated its June quarter revenue guidance of $17.6 billion to $18.2 billion and a gross margin of 58 percent.
TSMC is the supplier of chips for all fabless semiconductor, consumer electronics and EV companies among others.
A new fab planned in Arizona would go ahead in line with the company’s plans despite the U.S. Congress not approving the $52 billion chip-funding bill, Liu reportedly said. This plant will help the Taiwanese foundry take its operations closer to its clients.
TSMC executives reportedly reiterated the company’s commitment to spend $40 billion to $44 billion in 2022 toward plant expansions and upgradation.
TSMC’s positive forecast is a leading indicator of end-market demand for its customers. The macroeconomic and geopolitical situation is currently fluid. Inflationary pressure is building up globally even as growth is stuttering, weighed down by the Ukraine war and the COVID-19 lockdowns in China.
Liu reportedly said the macro and geopolitical setbacks have hurt only consumer devices such as smartphones and PCs. EV demand is holding up, with chip demand of the industry exceeding TSMC’s capacity, he said. Therefore, TSMC is making inventory adjustments, he added.
Apple is reportedly preparing for flat iPhone shipments in 2022, which would suggest a less-than-consensus unit shipment number. The flat performance is facilitated by the company’s focus on high-end customers, who are relatively immune to economic conditions, and its efficient supply chain management. Others in the consumer electronics industry could take a bigger hit.
By Shanthi Rexaline
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