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TSMC posted a record profit for its entire history

The world’s largest microchip maker Taiwan Semiconductor Manufacturing Co. ( TSMC ), reported a record net profit for the fourth quarter of 2022, on the back of strong demand for high-speed computing microchips and an increase in its profitability. The company’s annual profit is also a record.

TSMC’s net profit for the October-December period was 295.9 billion New Taiwan dollars ($9.72 billion), compared with 166.2 billion New Taiwan dollars in the same period last year, the company said, as quoted by Interfax.

The benchmark’s value exceeded the average advance forecast of 288 billion New Taiwan dollars of analysts polled by S&P Global Market Intelligence.

The company’s fourth-quarter revenue jumped 43 percent year-on-year to 625.53 billion New Taiwan dollars.

For the full year 2022, TSMC reached a net profit of 1.02 trillion New Taiwan dollars (about $27 billion) and revenue of 2.26 trillion New Taiwan dollars.

The indicated figures for revenue and profit for the fourth quarter of 2022 and for the full year of 2022 became records for the entire history of the TSMC company (for the quarter and for the year, respectively).

And the company’s profitability in the last quarter of last year jumped by 10.3 percentage points compared to the same period last year, to a rather impressive 52%.

Specifically, in the smartphone segment, TSMC saw revenue decline by 4%, but in the high-speed PC segment, the indicator rose by 10%. About 69% of its revenue the company received from sales in North America, and in China – 12%.

TSMC is one of the main suppliers to the American Apple, and also produces chips for other smartphone manufacturers. However, Apple brings in about 20% of the company’s revenue.

Over the past 12 months, however, TSMC’s market capitalization has fallen 26.4% and currently stands at about 12.6 trillion New Taiwan dollars.

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Production is expected to start in 2024

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