Capital expenditure and revenue growth remain unchanged this year: TSMC 

Liu Deyin, chairman of TSMC that the recent expansion of the blockade in mainland China due to the epidemic has affected the purchase demand of consumers in mainland China, including PCs, mobile phones, etc.

But the global demand for automotive, efficient computing and the Internet of Things continues to be strong. TSMC’s outlook for capital spending and revenue growth this year remains unchanged.

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According to the latest report, TSMC has an 8-inch fab in Songjiang District, Shanghai, and its current production is not affected by the lockdown. Liu Deyin revealed that the local government had given prior notice to allow TSMC to deploy in advance to maintain the normal operation of personnel and production.

It is understood that TSMC expects the company’s revenue growth in 2022 to fall between 26 and 29% at the legal conference. Factors such as manufacturing processes, price increases, and increased production capacity will affect revenue. 

In 2022, HPC and automotive electronics are expected to grow higher than the company’s average, while revenue from IoT and smartphones is similar to the company’s average.

In addition, in terms of capital expenditures, TSMC said that in 2021, capital expenditures will cost 30 billion US dollars, and it is expected to be 40 billion to 44 billion US dollars in 2022. 70 to 80% of the expenditure is spent on advanced processes, 10% is spent on advanced packaging, and 10~20% is spent on special processes.

(via)