TSMC, the corporate that produces Apple’s A-series and M-series chips for iPhones, iPads, and Macs, has posted report income for the newest quarter in addition to spectacular development. The corporate additionally touted plans to pump enormous sums of cash again into its enterprise.
Following the information that TSMC posted report quarterly income the corporate mentioned that it intends to spend not less than a 3rd extra this yr than it did final — final yr noticed the corporate spend $30 billion in accordance with a Reuters report.
Taiwan Semiconductor Manufacturing Co Ltd (TSMC) , a serious Apple Inc (AAPL.O) provider that additionally has prospects resembling Qualcomm Inc (QCOM.O), posted a 16.4% rise in fourth-quarter revenue.
The corporate mentioned it expects to carry capital spending to between $40 billion and $44 billion this yr. Final yr it spent $30 billion.
The corporate additionally raised its targets for the approaching years, citing a “multi-year megatrend.”
With what it calls a “multi-year business megatrend” of sturdy chip demand boosted by new applied sciences, TSMC raised its compound annual development fee targets for income over the following a number of years to fifteen%-20% from 10%-15%.
TSMC, like Foxconn, sees its fortunes very a lot linked to Apple’s. Apple has some large releases within the works together with the rumored Apple Glass combined actuality headset and notorious Apple Car mission. It appears very probably that each tasks will contain TSMC, whereas the iPhone, iPad, and Mac chip manufacturing will little doubt show profitable for the chipmaker as effectively.