Logo of Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC) labels its headquarters in Hsinchu, Taiwan, Wednesday, October 20, 2021. TSMC, the largest contract chip manufacturer for Smartphones and other products, said on Thursday, January 12, 2023, its quarterly profit increased 78% from a year earlier but forecast weak demand this year. Credit: AP Photo/Chiang Ying-ying
Taiwan Semiconductor Manufacturing Co., the largest contract chipmaker for smartphones and other products, on Thursday said its quarterly profit jumped 78% from a year earlier but forecast weak demand this year.
Revenue for the final quarter of 2022 rose 42.8% from a year earlier to NT$625.5 billion ($20.6 billion), the company announced. Profit was new Taiwan$295.9 billion ($9.7 billion).
TSMC, based in Hsinchu, Taiwan, makes processor chips for brands including Apple Inc. and Qualcomm Inc. Many of its products are assembled by factories in China, which has exposed TSMC to the possible impact of US-China tensions over technology and security.
Fourth-quarter revenue suffers from ‘weak demand’ as global economy weakens, TSCM’s finance director, Wendell Huang, said in a statement. Huang said the company expects sales to continue to decline in the first quarter of 2023.
Chipmakers are benefiting from demand for next-generation telecommunications, high performance computing and chips for use in products ranging from cars to medical devices.
TSMC announced plans last year to invest $100 billion over the next three years in manufacturing and research and development.
Most of the semiconductors used in smartphones, Medical equipmentcomputers and other products made in Taiwan, Korea and China.
That has led US officials to worry about their reliance on supplies that could be disrupted by the conflict between China and Taiwan. They are lobbying TSMC and other chipmakers to set up factories in the United States.
President Joe Biden last month visited a semiconductor manufacturing facility TSMC is under construction in Phoenix. The company announced plans to invest $40 billion in Arizona.
TSMC announced plans last year to build its first chip factory in Japan. Company and Sony Corp. then said they would jointly invest $7 billion in the facility.
TSMC also operates a chip factory in Camas, Washington, and design centers in San Jose, California and Austin, Texas.
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