TSM
TSMC plan for up to $28B in capital spending comes as chip industry frets
over capacity
- Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) came through with an
announcement of record capital spending: Up to $28B this year, a sum
meant
to extend its leadership as well as build the Arizona plant it intends to
take care of certain American customers.
- The figure blows away its record last year of $17B in spending, and
reflects not only confidence in the company's growth but also an
opportunistic move amid a surge in demand for semiconductors. TSMC is
typically conservative about capital spending.
- Along with the massive spending plans, TSMC announced record revenues
and profits: Net income jumped 23% to NT$142.8B - about $5.1B, helping to
build a 50% increase in full-year profit. Revenues rose 14%, to a record
NT$361.5B (about $12.9B).
- It's guiding to revenue for the current quarter equivalent to
$12.7B-$13B, ahead of consensus for $12.4B.
- Shares are up 1.5% in Taiwan. Suppler Tokyo Electron (OTCPK:TOELY) is
up
3.5% in Tokyo.
- The massive spending figure - more than half TSMC's projected revenue
for the year - may serve to alleviate some industry concerns about a
shortage, as heavy demand (from areas including 5G smartphones and
recovering auto sales) has strained industry production capacity.
- And while phones have been crucial to TSMC's business - the new iPhone
was a key reason for the record Q4 revenues - its chairman says
high-performance computing will crowd out smartphones to become the
company's leading growth driver.
- Reports recently have Intel (NASDAQ:INTC) talking with TSMC and
Samsung (OTC:SSNLF) as it decides how much production to outsource, a
decision that is due when Intel reports earnings on Jan. 21.
|Today, 1:01 AM|12 Comments
TSMC plan for up to $28B in capital spending comes as chip industry frets
over capacity
- Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) came through with an
announcement of record capital spending: Up to $28B this year, a sum
meant
to extend its leadership as well as build the Arizona plant it intends to
take care of certain American customers.
- The figure blows away its record last year of $17B in spending, and
reflects not only confidence in the company's growth but also an
opportunistic move amid a surge in demand for semiconductors. TSMC is
typically conservative about capital spending.
- Along with the massive spending plans, TSMC announced record revenues
and profits: Net income jumped 23% to NT$142.8B - about $5.1B, helping to
build a 50% increase in full-year profit. Revenues rose 14%, to a record
NT$361.5B (about $12.9B).
- It's guiding to revenue for the current quarter equivalent to
$12.7B-$13B, ahead of consensus for $12.4B.
- Shares are up 1.5% in Taiwan. Suppler Tokyo Electron (OTCPK:TOELY) is
up
3.5% in Tokyo.
- The massive spending figure - more than half TSMC's projected revenue
for the year - may serve to alleviate some industry concerns about a
shortage, as heavy demand (from areas including 5G smartphones and
recovering auto sales) has strained industry production capacity.
- And while phones have been crucial to TSMC's business - the new iPhone
was a key reason for the record Q4 revenues - its chairman says
high-performance computing will crowd out smartphones to become the
company's leading growth driver.
- Reports recently have Intel (NASDAQ:INTC) talking with TSMC and
Samsung (OTC:SSNLF) as it decides how much production to outsource, a
decision that is due when Intel reports earnings on Jan. 21.
|Today, 1:01 AM|12 Comments
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