TSMC expects to post revenues of between US$12.7 billion and US$13 billion in the first quarter of 2021, which is a 1.3% sequential increase at the midpoint, reports DigiTimes. Gross margin and operating margin for the quarter are estimated at 50.5-52.5% and 39.5-41.5%, respectively.
The Taiwanese titan also revealed that it will raise its capital spending to record levels as the world’s biggest contract chipmaker looks to maintain its lead in semiconductor production technology. $25 billion to $28 billion will be spent on plants and equipment this year, around 80% of which will go to the company’s three most advanced chip production technologies.
TSMC credited its robust 5nm chip shipments during the fourth quarter to demand for 5G smartphones and HPC-related applications. TSMC saw its shipments for smartphones represent 51% of the foundry’s total wafer revenue in the fourth quarter, followed by those for HPC-related applications with 31%, reports DigiTimes.
TSMC expects to continue outperforming the industry average this year, with sales growth in the mid-teens range.
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