Taiwan Semiconductor Manufacturing Company said it could achieve a gross profit margin of 50 per cent or higher in the long term as customers have become more willing to pay higher prices amid an extended global chip shortage.
The world’s largest contract chipmaker reported net income of NT$156.3bn ($5.6bn) in the three months to September 30, up 13.8 per cent from last year and 16.3 per cent from the previous quarter. The results beat analysts’ average estimates of an 11.2 per cent revenue increase compared with the second quarter, with the company increasing capacity to deal with high demand.
“We expect our capacity to remain tight in 2021 and throughout 2022,” CC Wei, chief executive, told investors after forecasting that full-year revenue would rise by 24 per cent.