Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) disclosed that it is striving to expand and lessen a worldwide chip shortage. Taiwan anticipated that the current condition shows that the shortage of chips will last in the next year as well. It has revealed that it is trying to increase productivity but also trying to keep the price affordable for all.
The statement of TSM comes after the firm disclosed that it has experienced a 19.4% increase in first-quarter profit. The Q1 profit has surpassed the expectations of the firm. It has seen a strong chip demand during a global shift to home working. More and more businesses are turning their focus towards stay-at-home work which increases the usage of laptops, Mobile phones, PCs. The demands of all these burdened the chips maker.
Steps to Increase Chips Production
Taiwan Semiconductor revealed that it has started the building of new sites and also started the hiring of a new team to start the production and fulfill the demands of its clients. It has commenced manufacturing at various sites.
The clients of TSMC include Apple Inc and Qualcomm Inc. These tech giants had already marked "several years of growth possibilities" as the COVID-19 pandemic increase the demand for sophisticated chips to power devices such as smartphones and laptops. Its business was lifted by the chip scarcity that originally forced automobile manufacturers to reduce manufacturing but is now also damaging makers of smartphones, laptops, and even consumer electronics.
The net profit of TSMC for January-March reached T$139.7 billion ($4.93 billion), as compared to the T$134.01 billion average of 22 analysts predicted. Revenue increases 25.4% to a record $12.92 billion, consistent with the firm’s previous anticipated range of $12.7 billion to $13 billion.