World’s Largest Chipmaker TSMC Raises Profits Sharply

TSMC, the world’s largest chip contract manufacturer, earned more than expected in the fourth quarter. Profits rose 78 percent to USD 295.9 billion, or the equivalent of about USD 9 billion, Taiwan Semiconductor Manufacturing Co announced Thursday.

TSMC had already published its sales figures a few days ago. Despite a growth of 43 percent to the equivalent of 19.1 billion euros, analyst estimates were not met for the first time in more than two years.

At the time, experts feared that this could be a sign of a slowdown in the chip industry, despite continued high growth rates.

Exclusive supplier for Apple

A possible impending recession and high inflation dampen consumer confidence and influence the purchase of new devices such as smartphones, tablets and computers. For example, TSMC is the exclusive supplier of Apple’s iPhone and Mac silicon chips.

The chipmaker is relying on its technology and economies of scale to defy the global slowdown in demand. The company cut its investment plans by 10 percent last year.

Like other manufacturers, TSMC had previously increased production capacity during the pandemic, also because electronic semiconductors were often in short supply.

In December 2022, Apple announced it would boost chip production in its home country, the United States. TSMC plans to invest $40 billion in Arizona plants.

(dsc/sda/awp/dpa)