TSMC U.S. shares close just short of record after fab doubles down on capacity

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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.

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TSMC TSM’s American Depository Receipts,
+5.26%
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. ,

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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.

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“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,
-5.09%,
Advanced Micro Devices Inc. amd,
-3.44%,
and Apple Inc. AAPL,
-1.90%

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