TSMC's Expansion Challenge Told in 10 Timely Charts
Margins are being squeezed, a hot new category leads growth, and Mother Nature shows her power at the world’s most important chipmaker.
A 12-inch wafer semiconductor.
Source: TSMC
Taiwan Semiconductor Manufacturing Co. has quietly grown to a place of global prominence by being the outright leader in chip manufacturing technology. Last week, the company doubled down by announcing a record $30 billion spending plan with even bigger checks to be written next year for the equipment required to make the world’s most-advanced chips. Demand for electronic components is entering a sustained growth phase as more people stream content online, companies let staff work from home, and fifth-generation mobile devices and networks are rolled out.
In 10 charts, we outline some of the key metrics at the Hsinchu-based supplier to Apple Inc., Qualcomm Inc., Nvidia Corp. and dozens more. The data show that while spending and average prices are on the rise, TSMC — and its shareholders — carry a greater short-term burden. The company is betting on large rewards at the end of the spending spree, but there are plenty of risks to contend with, too.