By Yimou Lee and Ben Blanchard
TAIPÉ (Reuters) – Taiwanese chip giant TSMC on Thursday announced plans to build a factory in Japan to meet demand, as shortages of supplies are likely to limit production in 2022.
Apple supplier TSMC said its Japanese plant will serve a segment facing severe shortages due to strong demand from automakers and technology companies. The factory’s production is not expected to start until the end of 2024.
“TSMC is working closely with our customers to plan our capacity and investment in specialized, leading-edge technologies to meet demand,” said CEO CC Wei after the company reported higher-than-expected third-quarter earnings.
TSMC reported a net profit of $5.56 billion from July to September, above the average estimate of 22 analysts polled by Refinitiv. Profit for the quarter was 13.8% higher than the same period last year.
Wei said TSMC’s capacity will remain “tight” through 2022, adding that the chip price “will remain strategic, not opportunistic, to reflect our value creation.”
The company raised its revenue growth forecast for 2021 to around 24%, from a previous forecast of more than 20%, citing an “industry megatrend” of strong demand for chips.
TSMC’s revenue for the quarter rose 22.6% to $14.88 billion, in line with the company’s previously estimated range of $14.6 to $14.9 billion.
For the fourth quarter, TSMC forecasts revenue of $15.4 billion to $15.7 billion, compared with $12.68 billion in the year-ago period.
(By Yimou Lee and Ben Blanchard)
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