Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world's largest chip maker, said it is doing everything it can to boost chip production and reduce the global chip shortage, which is likely to continue into the next year.
“We have purchased land and equipment, started construction of new facilities. We are hiring thousands of employees and expanding our capabilities at several sites, ”said TSMC CEO.
TSMC's comments came after the company reported a 19.4% increase in first-quarter earnings, surpassing market expectations, driven by strong chip demand amid a global shift to work from home.
TSMC, whose clients include Apple Inc and Qualcomm Inc, have already cited “several years of growth opportunities” as the COVID-19 pandemic has spurred demand for advanced chips to bundle devices such as smartphones and laptops.
On Thursday, TSMC said it expects to significantly reduce chip shortages for its automotive customers from next quarter.
TSMC's net profit for January-March 2021 was $ 4.93 billion. Revenue increased by 25.4%.
TSMC said this month that it plans to invest $ 100 billion over the next three years to increase manufacturing capacity in its factories, just days after Intel Corp announced a $ 20 billion investment plan to expand its manufacturing capacity. production of advanced microcircuits.
Analysts are optimistic about the company's massive expansion plan, expecting global demand for cutting-edge chips to rise as fifth generation (5G) communications technologies and artificial intelligence applications become more widespread.