Taiwan’s TSMC, the world’s largest foundry (semiconductor consignment production) company, announced on the 13th that it is planning to invest between $40 billion and $44 billion in facilities in 2022.
According to reports, TSMC said in its fourth-quarter earnings announcement of last year that demand for semiconductors will continue to strengthen over the next few years and plans to increase facility investment this year from last year to expand production capacity.
TSMC invested $30 billion in facility investment last year.
TSMC’s facility investment planned for this year, which previously announced an investment plan worth $100 billion to expand production capacity last year, is more than 43% larger than Intel’s investment plan for 2022.
TSMC also raised its annual sales growth forecast from 10-15% to 15-20% over the next few years and raised its long-term sales gross profit target from 50% to 53%.
TSMC CEO C. C. Wei said the company is entering a period of structural high growth, adding, “The supply situation will still be bad this year, but demand will remain in the long run.
He also stressed that even if adjustments appear in the semiconductor market, the impact on the company will not be significant considering its status as a technology leader and expectations for structural demand growth that will continue for many years.
Meanwhile, TSMC said sales rose 24.1% to $15.74 billion in the fourth quarter of last year, and net profit also rose 16.4% to $6.01 billion.
TSMC presented its sales estimate between $16.6 billion and $17.2 billion in the first quarter of this year, predicting that annual sales growth will also be in the mid-20% range this year.
TSMC’s stock price rose 7% in the new year alone, with a market capitalization of about $618 billion.
