These three claims made by TSMC are incredibly shocking given the current shortage of chips

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During the quarter, revenue amounted to 534.14 billion Taiwanese dollars ($18.16 billion), a 43.5% rise year-on-year. As you probably know, thanks to the pandemic, there has been a global chip shortage. Foundries were negatively impacted by a shortage of experienced workers and a surprise demand for new automobiles also pumped up demand for integrated circuits.

TSMC is the biggest foundry in the world. The business develops semiconductors using designs made by businesses like Apple, Qualcomm, MediaTek, and others. According to TSMC, the company beat expectations and achieved a record quarterly profit for the second quarter of 237.03 trillion Taiwanese dollars ($7.9 billion U.S. Dollars), a 76.4 percent increase over the same period last year. For TSMC, that was a record-breaking quarter in terms of net income.

Highlights

  • Inside a TSMC clean room,, yellow light is used to prevent interference with the UV light used to mark up circuit patterns TSMC surprisingly says that it has “excessive chip inventory” thanks to “softening demand” for PC’s, smartphones, and other consumer products. TSMC says that it will take a few quarters before the chip industry rebalances. TSMC CEO C.C. Wei says, “Our suppliers have been facing greater challenges in supply chains, which are extending tool delivery times for both our advanced and mature nodes,” Wei stated.

  • Apple CEO Tim Cook estimated that the chip shortage cost Apple six billion dollars in lost revenue last year. Interestingly, the shortage had more of an impact on legacy chips than the latest cutting-edge silicon. Inside a TSMC clean room,, yellow light is used to prevent interference with the UV light used to mark up circuit patterns – These three words said by TSMC are absolutely surprising in light of the chip shortage.

The main driver for the global chip shortage was not poor yields or crypto, it was Big Tech buying up all the supply for massive investments in data centres and the likes. I bet you, no matter what half-wealthy country you live in, if you go on a trip around the fringes of any major city, they have been busy building data centres over the last few years. These are sites with tens of thousands of racks. Hundreds of thousands server slots. The need for hundreds of thousands of GPUs at the biggest sites. All tech companies offer gaming and media streaming these days. To a world with nearly 8 billion people. The big players in these cloud service business are probably done expanding for a while. Most likely because they’re a bit wary about the end of the big work-from-home pandemic we’re emerging from at the moment.

The executive is positive about chip demand for the long term. He says, “Now let me talk about TSMC’s long-term growth outlook. While macroeconomic headwinds bring near-term uncertainties that may persist, we believe the fundamental structural growth trajectory in the long-term semiconductor demand remains firmly in place.” Still, the trend is not TSMC investors’ friend with the foundry’s stick price down $48.20 or 36.02% over the last six months to $85.63 a share. With the list of customers that TSMC has, especially Apple, MediaTek, and Qualcomm, the foundry shouldn’t run into any serious economic issues in the short term.

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