As the world’s largest chip manufacturer, TSMC was positioned to bear the brunt of the slowing demands in general.
Taiwanese multinational chip manufacturing giant Taiwan Semiconductor Mfg. Co. Ltd (NYSE: TSM) has reported an impressive sales record for the 2022 financial year. According to the recent release by the company, its consolidated sales for the past year came in at NT$2.26 trillion (US$75.23 billion), up 42.6% from the year-ago period.
Per the results shared, the annual growth was fueled by its performance in the fourth quarter which rose by 2% from the previous quarter. The chipmaker’s fourth quarter revenue was pegged at NT$625.5 billion ($20.6 billion), up 43%, however, this impressive figure came in behind the NT$636 billion projection from analysts.
Per the recently shared report, the company said its December sales soared 24% to NT$192.6 billion. The missed estimate comes as the first for the firm in 2 years, a situation that shows the company is not entirely immune to the current realities of the global economy.
Last year saw record inflationary growth across various economies and a corresponding hike in interest rates from Central Banks further aggravated the financial strain for most firms. With the trend, the purchasing powers of consumers were greatly hampered and this translated to a slowdown in the demand for high-end electronic devices.
As the world’s largest chip manufacturer, TSMC was positioned to bear the brunt of the slowing demands in general. Besides the economy, concerns surrounding China’s zero-COVID-19 policies at a point last year also lend a hand to the company’s revenue estimate miss.
As the sole supplier of the chip Apple Inc (NASDAQ: AAPL) uses for its iPhones and Mac, the riot from the American giant’s factory over lockdown discrepancies might have also had its undertone in hampering TSMC’s operations.
TSMC and the Quest to Expand Its Chip Manufacturing Plants
Over the years, TSMC has maintained a relatively limited number of its manufacturing plants, a move that has continued to threaten its future sustainability agenda. In a bid to change this narrative, the company is looking to diversify its plants’ geographical spread to the United States and Japan.
As reported earlier by Coinspeaker, the company plans to build a $12 billion chip factory in the United States. The factory, when completed is billed to create as many as 1,600 jobs and it will further reduce the supply chain disruptions that may engulf the global economy as we have seen in the past 3 years.
While the current inflation outlook is still not looking favorable, TSMC may build on its momentum to cut its capital expenditure again this year as it did when it slashed it by 10% to $36 billion last year.
The company’s shares are up by 2.87% to $80.31, paring off the more than 27% loss it accrued last year.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
