Core East-West (public account: aichip001)
compilation | Yang Chang
editor | Sanbei
Core East-West reported on June 8, according to Reuters and Bloomberg news, TSMC held its annual shareholder meeting today. Chairman Liu Deyin said that TSMC expects its revenue to grow by about 30% in 2022, with revenue for this quarter expected to be US$17.6 billion to US$18.2 billion.
Liu Deyin also said at the board meeting that TSMC currently has no specific plans to build factories in Europe. The reason, he added, is that the area has fewer customers than other areas.
1. TSMC expects its revenue to grow by 30% in 2022
TSMC Chairman Liu Deyin said at the shareholders' meeting that TSMC's revenue growth this year should exceed the growth in 2021. TSMC's revenue growth rate in 2021 will be 24.9 % (in USD). The forecast is consistent with what TSMC executives said in April. At the
shareholder meeting, TSMC executives said that global demand for smartphones and computers has been hit hard, but consumer spending in areas such as electric vehicles exceeded expectations. This downplays the impact of inflation on .
Liu Deyin said: "The current inflation has no direct impact on the semiconductor industry, because the decline in consumer demand is mainly for consumer electronic devices such as smartphones and personal computers, and consumer demand for electric vehicles is very strong. These impacts have brought Chip demand, in part, exceeds our supply capacity, so we are adjusting inventory. TSMC's capacity utilization for the remainder of this year is already at full capacity."
TSMC once again mentioned its previous revenue forecast for this quarter. TSMC is expected to achieve operating income of US$17.6 billion to US$18.2 billion this quarter, with a gross profit margin of 58%.
Bloomberg pointed out that although the chip company has been one of the biggest beneficiaries of soaring chip demand in the past few years, investors are worried about the impact of tightening global policies in 2022 on chip consumption. Apple plans to maintain iPhone production roughly the same as before in 2022. This year has become increasingly challenging for the smartphone industry. Meanwhile, chip delivery wait times hit a record high in May, even as some companies saw signs of relief. Chipmakers are also raising product prices due to rising costs.
2. More than US$40 billion in expenditures have been reserved, and there are currently no specific plans to build factories in Europe.
Liu Deyin also told TSMC shareholders at the shareholders’ meeting that although the US Congress has made less progress in approving a US$52 billion chip financing bill, TSMC Construction of a new plant in Arizona, USA, will continue. He added that these were under control but could still push up construction costs.
TSMC is building a US$12 billion factory in Arizona, USA, and will also expand production capacity closer to Taiwan, China. Liu Deyin said that the outside world has been speculating that TSMC is considering building factories in Europe, but TSMC currently has no specific plans to build factories in Europe. He added that TSMC has fewer European customers than it does in other parts of the world, and the company is also evaluating expansion plans in various regions, with customer demand being the main consideration.
TSMC executives reiterated that TSMC has set aside US$40-44 billion for expansion and equipment upgrades and expects to spend more than US$40 billion in these areas in 2023, with the goal of enabling TSMC to maintain rapid technological development. and meet cutting-edge future needs.
Liu Deyin said: "TSMC has entered a period of structural high growth, and technological leadership is the key to our development."
Conclusion: TSMC maintains high revenue expectations and continues its capacity expansion plan.
TSMC's chairman said that TSMC has entered a period of structural growth. In a period of high growth, judging from TSMC’s revenue expectations, TSMC’s revenue growth rate this year will exceed last year’s.
In addition, TSMC has maintained ultra-high investment in expanding production capacity. TSMC is expected to invest more than 80 billion US dollars in 2022 and 2023, which is expected to bring more new changes and richer returns to TSMC.
Source: Reuters, Bloomberg
