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TSMC to Achieve 30% Sales Growth in 2022

TSMC will continue with its new fab in Arizona despite a lack of progress in Congress on approving a $52 billion chip-funding bill.

Despite of facing major global macroeconomic uncertainty, Taiwan Semiconductor Manufacturing Co. (TSMC) is expecting to mark a growth of about 30% in 2022.

Shortage of Semiconductor ChipsThe Chairman of TSMC Mark Liu shared with a news portal that sales growth this year should accelerate from 2021’s 24.9%.

The war of Ukraine, and Chinese lockdown have already hampered the demand of gadgets.

“The current inflation has no direct impact on the semiconductor industry as the demand drop is mainly for consumer devices like smartphones and PCs while EV demand is very strong and partially exceeds our supply capacity so we are making inventory adjustments,” Liu said. “Utilization rate is full for the rest of the year.”

TSMC, the most advanced maker of chips for tech giants from Apple Inc. to Nvidia Corp., rose more than 1% in Taipei, after having shed more than a tenth of its value this year. While the Taiwanese company has been one of the biggest beneficiaries in past years of soaring demand for chips in a growing range of connected devices, investors fear policy tightening around the world will begin to erode consumption in 2022.

Apple is planning to keep iPhone production roughly flat in 2022, Bloomberg News has reported — a conservative stance as the year turns increasingly challenging for the smartphone industry. At the same time, wait times for semiconductor delivery hit a record high in May though some companies are starting to see relief. Chipmakers are also raising prices due to rising costs.

TSMC will continue with its new fab in Arizona despite a lack of progress in Congress on approving a $52 billion chip-funding bill, Liu told. That could push up costs though it would be manageable, the TSMC chairman added.

TSMC is building a $12 billion plant in Arizona in addition to capacity expansion underway closer to home. Speculation has persisted that the chip giant is considering a factory in Europe, but it has no concrete plans to build a fab in that region for now, Liu said.

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Nitisha Dubey

I am a Journalist with a post graduate degree in Journalism & Mass Communication. I love reading non-fiction books, exploring different destinations and varieties of cuisines. Biographies and historical movies are few favourites.

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