Friday, February 11th 2022
TSMC Reports Record January Revenues
Based on TSMC's official January 2022 revenue report, it looks like the company is set for another great year. Month-on-month revenues are up by 10.8 percent compared to December of last year and year-on-year revenues are up a whopping 35.8 percent. In actual money, that corresponds to a revenue of NT$172.18 billion, or roughly US$6.18 billion, so we're not talking about small potatoes here.
TSMC is forecasting a growth in sales of between 25 to 29 percent this year, assuming they can continue to deliver as expected to their customers. The first quarter sales are expected to land between US$16.6 and 17.2 billion, or around a 7.4 percent increase compared to last quarter. Its closest competitor in Taiwan also announced record profits, although at a mere NT$20.47 billion or about US$735 million. This is a month-to-month increase of a mere 0.95 percent, but an annual increase of a healthy 31.83 percent. UMC is expecting to be operating at full capacity for the remainder of this year, although no additional production capacity is expected. The company is said to be increasing its prices by five percent this year.
Sources:
TSMC, CNA News
TSMC is forecasting a growth in sales of between 25 to 29 percent this year, assuming they can continue to deliver as expected to their customers. The first quarter sales are expected to land between US$16.6 and 17.2 billion, or around a 7.4 percent increase compared to last quarter. Its closest competitor in Taiwan also announced record profits, although at a mere NT$20.47 billion or about US$735 million. This is a month-to-month increase of a mere 0.95 percent, but an annual increase of a healthy 31.83 percent. UMC is expecting to be operating at full capacity for the remainder of this year, although no additional production capacity is expected. The company is said to be increasing its prices by five percent this year.
34 Comments on TSMC Reports Record January Revenues
Sorry, Taiwan isn't even a country, so the government kind of has to help, since Taiwan doesn't technically exist. As such, it's really damned hard to do business, especially when a huge dictatorship is trying to prevent the non-country from doing anything outside of its own borders.Samsung wants a word with you.No-one is really producing less though.
Due to the handbreak being pulled in early 2020, the JIT (Just in Time) system everyone relied on, broke to bits. When everyone realised that the pandemic wouldn't cause a decline in demand, but rather the opposite a few months later, all the suppliers, fabs, shipping companies and so forth, had already stopped their production or slowed down to a bare minimum and had to go from 10% to 110% over night. This was happening with restrictions in place and people getting sick, so it simply wasn't possible. Some companies had stock of key components, but most didn't, so they had to cut their production in term and ended up raising the prices to make up for it. As for graphics cards, the crypto crap took off again and we know what that lead to. People needed a bunch of stuff to be able to work from home on top of that, sometimes things that weren't even produced in particularly large quantities any more, due to low demand. None of what's going on is as simple as you and a lot of other people make it out to be.
For example, Intel use to sell Platinum Xeon 28 core chips for 4/8 socket systems up to $20k. These chips were easily beat by sub $10k Epyc 64 core chips for 1/2 socket systems.
Lower prices and less sales in the high end drops gross margins.