In short: TSMC simply had its easiest month ever when it comes to gross sales, and it seems like 2022 may additionally be its easiest yr but. Robust call for for GPUs, CPUs, consoles, and telephones has been a boon for foundries like TSMC, who’s the use of it to gasoline capability expansions in Taiwan, Japan and the USA.
Taiwan Semiconductor Production Corporate (TSMC) launched its initial record on its Q1 2022 profits this week. The arena’s greatest semiconductor foundry stated it recorded gross sales of NT$146.9 billion (round $5.2 billion) in February.
That is the corporate’s perfect recorded income determine for the month of February, and whilst it is down 15 % month-on-month when in comparison to January, it represents a 38 % build up when in comparison to the similar length remaining yr. The variation from January is most commonly because of downtime associated with the week-long Lunar New Yr vacation.
TSMC says it recorded mixed gross sales of NT$319.1 billion for the primary two months of 2022, which is a 36.8 % year-over-year build up. The corporate expects an uptick in gross sales for this month, so it has adjusted its income forecast to replicate a goal of $16.6 billion to $17.2 billion for the primary quarter.
The corporate has loved a robust monetary efficiency during the last two years amid unrelenting call for for chips made on its complex procedure nodes. Previous this yr, TSMC promised it might spend anyplace from $40 billion to $44 billion on upgrading its production capability in 2022.
Apple stays TSMC’s greatest buyer, with an estimated 26 % of its income coming from the Cupertino massive. Apple’s not too long ago introduced M1 Extremely chipset is the results of a deeper collaboration with TSMC, involving the latter’s 4nm procedure node in addition to its complex 2.5D chip-on-wafer-on-substrate with silicon interposer (CoWoS-S) generation.
The foundry has many causes to be constructive concerning the long run, as Nvidia is claimed to have spent $10 billion for a big chew of its 5nm capability. Its 3nm procedure node additionally appears to be like promising, with Qualcomm making plans to faucet into it for long run Snapdragon 8-series chips.
This yr, TSMC has made up our minds to extend wafer costs for its 7nm and 5nm procedure nodes, and if historical past is any indication Apple will most probably benefit from the smallest worth hike. Different corporations will see anyplace from 10 to twenty % upper costs beginning in Q3 2022.
Thankfully, this may be when Nvidia and AMD’s AIB companions be expecting to look a ten % build up in graphics card shipments, so it is imaginable the wafer worth hike would possibly not have a pronounced impact on retail costs for GPUs. Both method, TSMC is constructive about its outlook and expects its 2022 gross sales to develop through 25 to 29 % when in comparison to remaining yr.