US-traded shares of Taiwan Semiconductor Manufacturing Co closed just short of a record high on Thursday after a third-party silicon-wafer fabricator said it was literally doubling down on its capacity to make silicon wafers.
TSMC TSM’s American Depository Receipts,
Was on track for record high earlier in the session, rallying up 10% to intraday high of $145.00, above ADR’s February 16, 2021, close to a record high of $140.05, but ending the day 5.3% at $139.19 Happened. ,
Earlier Thursday, TSMC said it had budgeted $40 billion to $44 billion to increase its fab capacity amid more than a year-long global chip shortage. This is double what the company had promised last year when it unveiled its $22 billion capital expenditure budget.
TSMC reported fourth-quarter revenue of $15.74 billion, a 24% jump from a year ago, as the company fills high demand for silicon wafers that go into making semiconductors. The company forecast revenue of $17.6 billion to $17.2 billion in the first quarter.
“Our fourth quarter business was supported by strong demand for our industry-leading 5-nanometer technology,” TSMC’s chief financial officer, Wendell Huang, said in a statement.
“Looking forward into Q1 2022, we expect our business to be supported by HPC-related demand, continued improvement in the automotive segment and a modest smartphone season compared to recent years,” Huang said.
TSMC supplies chip manufacturers that have Nvidia Corp. are not their own fab like NVDA,
Advanced Micro Devices Inc. amd,
and Apple Inc. AAPL,