: TSMC U.S. shares close just short of record after fab doubles down on capacity

U.S.-traded shares of Taiwan Semiconductor Manufacturing Co. closed just short of a record high Thursday after the third-party silicon-wafer fabricator said it was doubling down, literally, on its capacity to make silicon wafers.

American depositary receipts of TSMC TSM, +5.26% had been on track for a record high close earlier in the session, rallying as much as 10% to an intraday high of $145.00, above the ADR’s Feb. 16, 2021, record close of $140.05, but ended the day up 5.3% at $139.19.

Early Thursday, TSMC said it had budgeted $40 billion to $44 billion to increase its fab capacity amid a global chip shortage that has lasted for more than a year. That’s double what the company pledged this time last year when it unveiled a $22 billion capital expenditure budget.

TSMC reported fourth-quarter revenue of $15.74 billion, a 24% jump from a year ago, as the company fills high demand for the silicon wafers that go into making semiconductors. The company forecast first-quarter revenue of $16.6 billion to $17.2 billion.

“Our fourth-quarter business was supported by strong demand for our industry leading 5-nanometer technology,” said Wendell Huang, TSMC chief financial officer, in a statement.

“Moving into first quarter 2022, we expect our business to be supported by HPC-related demand, continued recovery in the automotive segment, and a milder smartphone seasonality than in recent years,” Huang said.

TSMC supplies chip makers who do not have their own fabs like Nvidia Corp. NVDA, -5.09%, Advanced Micro Devices Inc. AMD, -3.44%, and Apple Inc. AAPL, -1.90%

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