TSMC: we expect capacity to remain tight throughout 2022
Taiwanese semiconductor giant TSMC saw it’s revenues for the first quarter of 2022 soar 35% compared to last year – supported by strong HPC and Automotive-related demand.
The manufacturer reported consolidated revenue of NTD 491.08 billion, net income of NTD 202.73 billion, for the first quarter of 2022. Year-over-year, first quarter revenue increased 35.5% while net income increased 45.1%.
In US dollars, first quarter revenue was USD 17.57 billion, which increased 36.0% year-over-year and increased 11.6% from the previous quarter.
The company says in its first quarter report that shipments of 5-nanometer accounted for 20% of total wafer revenue; 7-nanometer accounted for 30%. Advanced technologies, defined as 7-nanometer and more advanced technologies, accounted for 50% of total wafer revenue.
“Our first quarter business was supported by strong HPC and Automotive-related demand,” said Wendell Huang, VP and Chief Financial Officer of TSMC, in the update. “Moving into second quarter 2022, we expect our business to continue to be supported by HPC and Automotive-related demand, partially offset by smartphone seasonality.”
Looking ahead on the company’s profitability, Wendell Huang said during the company’s earnings call that TSMC continues to face challenges from rising inflationary costs, increasing process complexity of leading nodes, new investments in mature nodes and overseas fab expansions
CEO C. C. Wei said that 2022 will be another strong growth year for TSMC. And that the company expects to be at or exceed the high end of its guidance. While pointing out that the company is well positioned to capture the strong structural demand within the industry the CEO also said that; ”we expect our capacity to remain tight throughout 2022.”
Given the recent constraint in the tool supply chain, the CEO also provided a tool delivery update.
“TSMC worked closely with all our tool suppliers to plan our CapEx and capacity in advance. However, like many other industries, our suppliers are facing great challenges in their supply chain from the continued impact of COVID-19, which are creating labor component and chip constraint in their supply chains and extending towards delivery lead time for both advanced and mature nodes.”
The CEO continued to say that the company is working with its customers to prioritise its wafer capacity to support critical chips to help mitigate the chip constraint issue.
With recent geo-political developments, the supply of noble gasses has become a hot topic. C. C. Wei stated during the earnings call that in terms of material supply, TSMC’s strategy is to continuously develop multi-source supply solutions to build a well-diversified global supplier base.
“For specialty chemicals and gases, including neon and geon we source from multiple suppliers in different regions, and we have prepared a certain level of inventory stock on hand. We are also working closely with our suppliers to further strengthen the resilience and the sustainability of our supply chain. Thus, we do not expect any impact on our operations from materials supply.”