Unlike the rest of the industry, TSMC shows a 78% net profit increase in Q4 2022

TSMC, a Taiwanese chipmaker, demonstrated a 78% growth in Q4 2022, which is another record for the company. It has managed to avoid the sweeping industry downturn raging in the global chip market.

The world’s biggest contract chipmaker which is a major supplier of Apple, among others, showed record net profits for Q4 2022: USD 9.8 billion – from USD 5.5 billion one year earlier. The company’s business has been boosted by the pandemic-driven global chip shortage due to soaring notebook and tablet sales. The shortage has been eased, yet the company still has a full order book since it makes some of the world’s most advanced chips.

TSMC’s Q4 2022 revenue has grown to USD 19.9 (+26.7%), vs previously estimated range of USD 19.9-20.7 billion. The company’s share price dropped 27.1% in 2022, but is on the rebound, having grown 8.5% this year. The firm’s current market value is $412.78 billion

The chip sector is generally dealing with weak demand and rising interest rates. TMSC has reduced its investment budget for 2022 by at least 10%, with an unusually cautious demand outlook for 2023. Its capital expenditures in 2022 amounted to USD 36.29, which approximates the forecast value.

TSMC’s general outlook for the future is positive, as the company management believes that the demand will continue to grow, boosted by the need for high-performance chips for data centers and 5G networks.

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