Taipei-Taiwan Semiconductor Manufacturing Co. (TSMC) said Thursday that it plans to Japan, The demand for chips that power smartphones, laptops and cars has surged due to the pandemic.

TSMC announced a record quarterly sales and forecasted an increase in revenue this quarter, and said it would expand production capacity China And it does not rule out the possibility of its “second stage” expansion of its $12 billion factory in Arizona.

The world’s largest contract chip maker and Apple’s main supplier also said that it is currently reviewing plans to establish a professional technology wafer manufacturing plant or wafer fab in Japan.

TSMC’s overseas expansion plan comes at a time when Taiwan’s chip manufacturing capacity is concentrated in Taiwan’s concerns. Taiwan produces most of the world’s most advanced chips and is geographically close to political rival China. It does not rule out the use of force to place this democratic island under its control. .

Taiwan and TSMC are also at the core of efforts to resolve the pandemic Global chip shortage This has forced automakers to reduce production and harmed the interests of smartphones, laptops and even electrical appliances manufacturers.

“We are expanding our global manufacturing footprint to maintain and enhance our competitive advantage and better serve our customers in the new geopolitical environment,” TSMC Chairman Mark Liu said on an analyst conference call.

“Although our overseas fabs cannot initially match the cost of our manufacturing operations in Taiwan, we will work with the government to minimize the cost gap,” Liu said.

He did not elaborate on its plans in the United States and Japan, adding that the company is working to “raise” wafer prices to reflect the increase in costs.

Reuters reported in May that TSMC is focusing on expanding beyond current plans in Arizona.

Liu said that TSMC also plans to use mature 28-nanometer semiconductor manufacturing technology to expand its production capacity in Nanjing, China due to the “urgent needs” of customers.

He said that it plans to start production next year and will eventually achieve the production of 40,000 wafers per month in the middle of 2023.

Automatic chip shortage alleviated?

TSMC’s revenue from April to June, Asia’s most valuable manufacturing company, increased by 28% to a record US$13.29 billion.

For the quarter ending in September, TSMC expects revenue of US$14.6 billion to US$14.9 billion, compared with US$12.1 billion in the same period last year.

TSMC says cars Chip shortage Starting from this quarter, its customers will gradually decrease, but it is expected that the overall semiconductor production capacity tightness may continue into next year.

The Taiwanese company also produces chips for Qualcomm. It has previously stated that it will have a $100 billion expansion plan in the next three years, as the fifth-generation telecommunications (5G) technology and artificial intelligence applications drive global demand for advanced chips.

“Entering the third quarter, we expect our business will be supported by strong demand for our industry-leading 5nm and 7nm technologies, which will be driven by all four growth platforms, namely smartphones, high-performance computing, and the Internet of Things And automotive-related applications,” said CFO Huang Wende.

Analysts are optimistic about TSMC’s business in the next few quarters, citing strong demand for the company’s most advanced 5-nanometer node technology and the 3-nanometer node that will enter trial production later this year.

TSMC said its profit in the second quarter increased by 11% year-on-year to NT$134.4 billion (US$4.81 billion), slightly lower than the average NT$136.5 billion estimated by Refinitiv’s 19 analysts.

TSMC is the 11th largest listed company in the world by market capitalization. It has risen about 16% so far this year, reaching a market value of US$567 billion, which is more than twice that of chip maker Intel Corporation.

TSMC shares closed up 0.16% on Thursday, while the benchmark index rose 1.1%.


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