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Investors expect that the chipmaker will announce a capital expenditure budget of over $40 billion for the current year.
Apple Inc (NASDAQ: AAPL) chipmaker Taiwan Semiconductor Manufacturing Company (NYSE: TSM), also referred to as TSMC, reports record quarterly sales at the end of the fourth quarter. The top chipmaker hit record highs due to strong demand from some of its top clients, including technology company Apple. The record quarterly sales TSMC reported in the quarter were also fueled by continued demand for semiconductors from Qualcomm (NASDAQ: QCOM).
In 2021 Q4, TSMC said its revenue grew to a record high of NT$438.19 billion, its sixth straight quarterly sales record. This comprises a monthly high in December as the chipmaker’s revenue for the month hit NT$155.38 billion. Also, it represents a 4.8% gain sequentially and a 32.4% jump year-on-year. The Q4 revenue was in line with TSMC’s prediction back in October. During the company’s last investor conference in mid-October, the chipmaker forecast consolidated sales between $154 billion and $157 billion.
With impressive quarterly sales, TSMC saw a total of NT$1.59 trillion in revenue in 2021. The total revenue for the year rose 18.5% on the year and also stood at an annual high.
Increased Demand for Semiconductors Influences TSMC Record Quarterly Sales
Over the past year, there has been a continued demand for semiconductors, which are highly important to smartphone makers and car manufacturers. The high demand exists despite the chip shortage that affected several industries. In Analysts’ opinion, the strong need for TSMC’s advanced 5-nanometer process c0ntributed to its growth. The advanced 5-nanometer process is the latest chipmaker’s technology which it has started to produce on a large scale.
Furthermore, more companies demand the various advanced products TSMC offers, especially with the emerging 5G applications and others.
Before 2021 ended, a report revealed that TSMC planned to increase prices amid supply shortages. The report stated that the chipmaker is looking at a 20% price hike due to strong demand and lack of supply.
More recently, Chinese financial institution China Renaissance wrote on its expectation for TSMC’s financials. The bank said it expects the chipmaker’s financials “to start reflecting foundry price hike benefits, which its other peers enjoyed immensely last year.” Looking forward into the year, China Renaissance upped its sales expectation for 2020 to 23& year-on-year revenue growth.
To detail its Q4 results, TSMC will organize an investor conference on the 13th of January. During the upcoming conference, the comma will also discuss guidance for the current quarter and the whole of 2022. In anticipation of the meeting, several investors hope that TSMC will reveal positive leads. Investors expect that the chipmaker will announce a capital expenditure budget of over $40 billion for the current year.
Currently, TSMC stock is at a premarket trading price of $125.33 on the New York Stock Exchange (NYSE).