TSMC Hits in Record 2021 Profit, 5 Nonometer Chips in Demand

· Setting up New Plants in Japan and US

Taiwan Semiconductor Manufacturing Company (TSMC), the semiconductor chip manufacturing behemoth that pioneered the pure-play foundry business model, has announced record sales in 2021.

In an official statement, the world's largest contract chipmaker said that the company's revenue from January through December 2021 totaled NT$1,587.42 billion (USD 57.11 billion), representing an increase of 18.5 percent compared to the same period in 2020. The company also clocked record revenue for the month of December 2021. TSMC's monthly revenue for December was at NT$155.38 billion (USD 5.6 billion) increase of 32.4 percent from December 2020.

TSMC's consolidated sales for the fourth quarter also hit a new quarterly high of NT$438.19 billion ((USD 5.6 billion), up 5.67 percent from a quarter earlier and up 21.2 percent over the same quarter last year. That’s the sixth straight quarterly sales record TSMC has recorded.

In 2020 , TSMC made a revenue of USD 48.29 billion an increase of 31.4 percent over 2019 revenue which stood at USD 38.58 billion.

TSMC's shares rose 1.42 percent to close at NT$643.00

TSMC'S strong performance in 2021 is driven by strong demand for its advanced 5-nanometer process, the latest technology the chipmaker has begun to mass-produce. The continued demand from top clients including Apple and Qualcomm for semiconductors boosted the company's sales to record level.

TSMC is Apple’s exclusive provider of the most advanced chips inside every iPhone currently on the market and most Mac computers.

New Fabs in U.S and Japan

In 2021, TSMC announced setting up of chip manufacturing units outside Taiwan

In Nov, TSMC announced that they will jointly build a new chip manufacturing unit in Japan and start producing chips by 2024.

TSMC-Sony joint venture will make an initial investment of $7 billion to establish the chip manufacturing plant. Construction of the chip plant is scheduled to commence in 2022

The joint venture company, to be called Japan Advanced Semiconductor Manufacturing, Inc. (“JASM”), will be set up in Kumamoto, Japan to provide foundry service with initial technology of 22/28-nanometer processes to address strong global market demand for specialty technologies. Sony will invest up to $500 million and will hold no more than a 20% stake in the joint company.

Japanese government will provide 600 billion yen ($5.2 billion) in subsidies to support the new chip manufacturing unit that will be set up by TSMC.

In 2021, TSMC commenced construction of its $12 billion fab factory in Phoenix, Phoenix, Arizona, where it will start making 5-nanometer chips in 2024. The company says it will produce 20,000 wafers each month.