Soaring demand for semiconductors used in smartphones, laptops, and other gadgets during the pandemic has led to an acute chip crunch, keeping order books full at Taiwan Semiconductor (TSM), the world’s most valuable and largest semiconductor manufacturer.
No wonder it reported a record quarterly profit.
Taiwan Semiconductor’s revenue growth went above 20% year on year (to $15.74 billion) in the fourth quarter. It was the highest growth rate since the third quarter of 2020. Growth for the chipmaker’s bottom line was also strong, with earnings rising 16% year on year, to $1.15 per share—topping estimates by double digits.
Another big positive was that operating margins grew by 50 basis points year on year to 41.7%. And the company expects margins to continue to improve in 2022, forecasting a range of 42-44%.
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