TSMC announces chip plant in Japan, flags 'tight' capacity throughout 2022
* Q3 profit T$156.3 bln vs T$149 bln market forecast
* Q3 revenue up 22.6% on year in U.S. dollar terms
* TSMC lifts 2021 revenue growth target to about 24%
* Japan factory to start production by late 2024
By Yimou Lee and Ben Blanchard
October 14, 2021 4:11 PM +07
TAIPEI, Oct 14 (Reuters) - Taiwan chip giant TSMC (2330.TW) announced on Thursday plans to build a new factory in Japan to meet long-term appetite for chips and said, near-term, tight supplies will likely continue into 2022 amid booming demand during the COVID-19 pandemic.
TSMC, the world's largest contract chipmaker and a key supplier to Apple Inc (AAPL.O), said it would set up a chip plant in Japan that will use older chipmaking technology, a segment currently under a severe supply shortage due to robust demand from automakers and tech companies. But production from the plant is only likely to begin by late 2024.
The company and Taiwan in general have become central in efforts to resolve a pandemic-induced global chip shortage, which has forced automakers to cut production and hurt manufacturers of smartphones, laptops and consumer appliances.
"TSMC is working closely with our customers to plan our capacity and investing in leading edge and speciality technologies to support their demand," Chief Executive Officer C. C. Wei told an online earnings briefing, after the company posted higher-than-expected profits in the third quarter.
He said the expansion plan in Japan was pending approval from the company's board and declined to disclose details such as expenditure and capacity.
TSMC posted a net profit of T$156.3 billion ($5.56 billion) in July-September, well above the T$149 billion average of 22 analyst estimates compiled by Refinitiv. That was 13.8% higher than the same period of last year.
Advanced chips made by TSMC, formally known as Taiwan Semiconductor Manufacturing Co , are used in everything from high-end smartphones like Apple's newly unveiled 5G iPhone 13, to artificial intelligence, cars and a wide variety of lower-end consumer goods.
Wei said TSMC's capacity will remain "tight" this year and throughout 2022, adding its chip pricing will "remain strategic not opportunistic to reflex our value creation".
More details in https://www.reuters.com/technology/taiwa...021-10-14/
* Q3 profit T$156.3 bln vs T$149 bln market forecast
* Q3 revenue up 22.6% on year in U.S. dollar terms
* TSMC lifts 2021 revenue growth target to about 24%
* Japan factory to start production by late 2024
By Yimou Lee and Ben Blanchard
October 14, 2021 4:11 PM +07
TAIPEI, Oct 14 (Reuters) - Taiwan chip giant TSMC (2330.TW) announced on Thursday plans to build a new factory in Japan to meet long-term appetite for chips and said, near-term, tight supplies will likely continue into 2022 amid booming demand during the COVID-19 pandemic.
TSMC, the world's largest contract chipmaker and a key supplier to Apple Inc (AAPL.O), said it would set up a chip plant in Japan that will use older chipmaking technology, a segment currently under a severe supply shortage due to robust demand from automakers and tech companies. But production from the plant is only likely to begin by late 2024.
The company and Taiwan in general have become central in efforts to resolve a pandemic-induced global chip shortage, which has forced automakers to cut production and hurt manufacturers of smartphones, laptops and consumer appliances.
"TSMC is working closely with our customers to plan our capacity and investing in leading edge and speciality technologies to support their demand," Chief Executive Officer C. C. Wei told an online earnings briefing, after the company posted higher-than-expected profits in the third quarter.
He said the expansion plan in Japan was pending approval from the company's board and declined to disclose details such as expenditure and capacity.
TSMC posted a net profit of T$156.3 billion ($5.56 billion) in July-September, well above the T$149 billion average of 22 analyst estimates compiled by Refinitiv. That was 13.8% higher than the same period of last year.
Advanced chips made by TSMC, formally known as Taiwan Semiconductor Manufacturing Co , are used in everything from high-end smartphones like Apple's newly unveiled 5G iPhone 13, to artificial intelligence, cars and a wide variety of lower-end consumer goods.
Wei said TSMC's capacity will remain "tight" this year and throughout 2022, adding its chip pricing will "remain strategic not opportunistic to reflex our value creation".
More details in https://www.reuters.com/technology/taiwa...021-10-14/
Specuvestor: Asset - Business - Structure.