TSMC Warns Global Chip Shortage Will Persist Through 2022
The world's largest contract chipmaker reports surging profits but warns that tight semiconductor supplies will continue into next year as it rapidly expands production capacity.
Taiwan Semiconductor Manufacturing Co Ltd (TSMC) confirms that the global chip shortage continues to impact multiple industries and expects tight supplies to last into 2022. The world's largest contract chipmaker reports a 19.4 percent rise in first-quarter profit, beating market expectations as strong demand for advanced chips powers devices like smartphones and laptops.
To address the crisis, TSMC is aggressively expanding its manufacturing capabilities by acquiring land and equipment, building new facilities, and hiring thousands of employees across multiple sites. The company states it is making every effort to increase productivity and alleviate the shortage while working to keep pricing reasonable for its clients, which include major tech giants like Apple and Qualcomm.
The widespread semiconductor shortage initially forced automakers to slash production but now hurts manufacturers of smartphones, computers, and home appliances. While TSMC anticipates the specific chip shortage for its automotive clients will greatly reduce by the next quarter, overall industry demand fueled by the shift to remote work ensures a long road to full recovery.