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TSMC boosts 2021 sales outlook, affirming strong chip demand

Taiwan Semiconductor Manufacturing Co. expects sales to rise more than 20% in 2021, affirming its crucial role in helping alleviate a global chip shortage that’s walloped automaking and other industries, reported Bloomberg.

TSMC, chipmaker to Apple and a key partner to many of the world’s biggest carmakers, expects semiconductor supply to remain tight into 2022, Chief Executive Officer C.C. Wei said Thursday. The company will ramp up production of microcontrollers by close to 60% this year, which will help to greatly reduce the chip shortage for its automobile clients starting in the current quarter, executives said.

Revenue in the current quarter may rise to between $14.6 billion and $14.9 billion, in line with the $14.7 billion average of analyst estimates. TSMC’s 2021 sales outlook marked a slight increase from a previous forecast for 20% growth in full-year sales.

“TSMC has actively taken steps throughout the first half of this year and will continue to do so through the rest of the year to address the chip supply challenges” for automakers, Wei told analysts. “We have worked dynamically with other customers to reallocate our wafer capacity to support the worldwide automotive industry.”

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