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Taiwan’s TSMC forecasts 30% revenue growth for 2022

TSMC also planning US$40 billion CAPEX budget for 2023

TSMC logo.

TSMC logo. (AP photo)

TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Co. (TSMC) said on Wednesday (June 8) that it expects revenue this year to increase by up to 30%, compared to 24.9% growth last year.

At the annual shareholders’ meeting, TSMC executives also said the company plans to spend between US$40 billion (NT$1.18 trillion) to US$44 billion this year on capital expenditures. TSMC is also eyeing a CAPEX budget of around US$40 billion next year, according to CNA.

The Taiwanese chipmaker’s forecasts come amid continued concerns about ongoing inflation, Russia’s invasion of Ukraine, and that China’s ongoing COVID lockdowns could affect electronics demand, according to Bloomberg.

“The current inflation has no direct impact on the semiconductor industry as the demand drop is mainly for consumer devices like smartphones and PCs while EV demand is very strong and partially exceeds our supply capacity, so we are making inventory adjustments,” Bloomberg cited TSMC Chairman Mark Liu (劉德音) as saying. “Utilization rate is full for the rest of the year.”

In response to media reports that the company was planning expansion into Europe, Liu said TSMC currently has no concrete plans to set up facilities there, according to CNA. Liu said the main consideration for the company when considering overseas facilities is client demand.

The world’s largest contract chipmaker is currently building plants in the U.S. and Japan, but has no definite plans for Europe as it has relatively fewer clients there, Liu said.