Thursday, January 13th 2022

TSMC Sees Record Q4 Profits, Plans to Increase CapEx

TSMC has held its quarterly earnings conference today and it's good news all around, at least if you're TSMC or one of its shareholders, as the company reported record profits of US$6.01 billion for the quarter, or an increase of 16.4 percent compared to the same quarter last year. At the same time, the company announced that it's going to increase its CapEx, by no less than US$40-44 billion this year, which should be compared to the US$30 billion in 2021. The company is expecting to continue to rake in money this quarter, with an expected revenue before expenditures and tax of US$16.6 to US$17.2 billion, compared to US$15.74 billion for this quarter.

Looking at the graphs provided by TSMC which shows where its revenue is coming from, its 7 nm and 5 nm nodes are now accounting for 50 percent of TSMC's revenues. The 5 nm node on its own, almost made as much money as its 16 and 28 nm nodes combined in Q4. We can also see that the 5 nm has gone from eight percent of TSMC's revenues in 2020, to 19 percent this year, with the 7 nm node dropping slightly from 33 percent to 31 percent. 2021 saw a massive 51 percent revenue growth in automotive components for TSMC compared to 2020, yet it only accounted for four percent of TSMC's total revenue for 2021. Smartphones and HPC are jointly holding 81 percent of TSMC's business based on revenue, which isn't likely to change any time soon.
Sources: Bloomberg, TSMC
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7 Comments on TSMC Sees Record Q4 Profits, Plans to Increase CapEx

#1
Udyr
Big money!
Big Prizes!
I love it!
- TSMC
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#2
windwhirl
TheLostSwedeby no less than US$40-44 billion this year
I know that at this point of how complicated smaller nods are that kind of investment is par for the course, but DAMN!
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#3
Daven
That’s interesting, 50% of the most recent quarter revenue comes from 16 nm and larger processes.
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#4
TheLostSwede
windwhirlI know that at this point of how complicated smaller nods are that kind of investment is par for the course, but DAMN!
Well, that money includes fabs, machinery, resource recycling etc. and possibly even additional hires, so it's not like it's just going to producing new production nodes.
DavenThat’s interesting, 50% of the most recent quarter revenue comes from 16 nm and larger processes.
A lot of things gain little to no benefits from smaller nodes and some things even have adverse performance on smaller nodes. Most of that is analog stuff like RF frontends and other specialised stuff though. Also a lot of the automotive stuff tends to be on older nodes.
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#5
medi01
In a world where there is car shortage because there is chip shortage... no wonder.

Besides the wonder why did demand on older stuff spike.
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#6
bonehead123
I'm sooooo surprised...said nobody :)
Posted on Reply
#7
mechtech
medi01In a world where there is car shortage because there is chip shortage... no wonder.

Besides the wonder why did demand on older stuff spike.
Cause have to make record profits somehow!!
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