(TSMC) TSMC intends to invest $40 billion to $44 billion in 2022 to address chip issues, with the shortages propelling it to a record NT$166.23 billion or $6 billion net income Q4 2021.
TSMC’S fourth quarter revenues were a jump of 16.4% from the prior year. The earnings were generated from a revenue of $15.74 billion, up 24.1% from the prior year.
The company delivered a gross margin of 52.7%, close to its long-term target of at least 53%.
The company now seeks to capture booming demand for specialty technology nodes, seeking to achieve a 15-20% CAGR sales-growth target.
The accelerated investment happens at a time TSMC has been running at near full capacity in the last year as an unprecedented chip shortage hit the market. The company’s 2022 spending target is more than $10 billion above last year.
TSMC is optimistic of future growth and profitability, with its gross profit margin seen to rise to between 53% and 55% from revenue of between $16.6 billion and $17.2 billion in the first quarter of 2022. The operating profit margin is expected at between 42% and 44%.
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