We have seen recently that many companies in the hardware world are very concerned about the economy and the looming threat of a recession. Very negative communications about the 2022 numbers are multiplying. But at TSMC we’re not worried at all…far from it. The world’s largest chipmaker expects its revenue to grow by about 30% this year, even more than the exceptional 2021 when it flirted with 25%.
2022 will be its best year
The main concern is clearly inflation. After months of crazy prices, consumers are on edge and a price cut is the only thing that could boost consumption according to manufacturers. But TSMC doesn’t share this reasoning. The Taiwanese giant admits that smartphones, TVs and PCs have seen sales decline, but CEO Mark Liu believes that none of this is affecting TSMC’s business and that price increases are now slowing. An assurance no doubt greatly supported by the growth of electric vehicle sales more than offsetting other declines. As a result, TSMC raised its growth projections and announced that it would spend $40 billion to $44 billion on capacity upgrades this year, $10 billion more than in 2021 and 43% more than the $25 billion to $28 billion Intel plans to spend on chip manufacturing in 2022. Next year, TSMC will spend another $40 billion on its expansion plans.
TSMC: Fear of Chinese action
So TSMC is the object of all eyes. Looks of envy from its competitors including Samsung, but also in recent hours, looks of fear after a leading Chinese economist recommended that Beijing seize the chipmaker if the United States and the West impose sanctions on the country similar to those imposed on Russia…
