This year, TSMC intends to increase investments by at least a third year over year to $ 40-44 billion. According to management forecasts, TSMC will increase its sales by 15-20% annually in the coming years and its profit margin will grow to at least 53% … In other words, the need to spend more will not undermine the company’s profitability.
TSMC now has $ 38 billion in free funds, which theoretically allows it to finance its investments for the current year mainly from its own reserves. Company management specified at a reporting conference that TSMC is entering a long-term industrial mega-cycle and is not afraid of a possible correction in market demand and overproduction as it focuses itself on advanced lithography. The latter is in demand from the market under all circumstances, as the events of the past two years have shown. The expansion of electric vehicles will also increase market demand for semiconductor components, so company officials say bold plans to increase production capacities are justified.
TSMC expects to end the current quarter with revenue up 7.2% to $ 17.2 billion in the most successful scenario. Revenue is expected to grow 25-29% to approximately $ 73 billion by the end of the year. Of the $ 44 billion allocated to build investments, the company intends to cover approximately 80% for needs related to technological standards to output from 2 to 7 nm, inclusive.
Such business scope enables TSMC to be less afraid of competition from Intel and Samsung. Now the capitalization of the Taiwanese giant reaches 620 billion dollars, outside the US none of the companies without state participation cannot compete with it in this sense. TSMC is also among the top four global companies, excluding oil companies, in terms of annual spending.