Taiwan Semiconductor Manufacturing Co.’s U.S. stock shares closed just shy of a record high Thursday after the company announced fourth-quarter revenue of more than $15 billion, 24% above its final quarter of 2020, with a $6 billion quarterly profit. TSMC also said that it’s budgeting $40 to $44 billion this year to expand its production capacity in the face of a worldwide chip shortage. That’s twice what the company spent on manufacturing last year.
“Every year our capex is spent in anticipation of the growth that will follow,” Chief Financial Officer Wendell Huang said during an earnings call.
TSMC announced last year that it plans to spend $100 billion yearly by 2024 on production and R&D. The world’s largest chip maker and the largest privately owned corporation outside the U.S. seems poised to build on its dominance.
“Moving into first quarter 2022, we expect our business to be supported by HPC-related demand, continued recovery in the automotive segment, and a milder smartphone seasonality than in recent years,” Huang said, in a statement.
TSMC is already building a new plant in Arizona, with plans for new facilities in Europe announced and a Japan plant to open soon. With smartphones, laptops, and other electronics in high demand as people rely even more heavily on computing power, the main chip supplier for companies like Apple is in prime position to keep profits climbing for the foreseeable future.