TSMC says it’s doing everything it can to alleviate chip shortages but it expects tight supplies to continue into 2022, reports Reuters. The company makes chips for a wide range of companies including Apple and has been struggling to keep up with demand fuelled by the coronavirus pandemic.
Following an announcement by Intel that it would invest $20 billion to expand its chip making capacity, TSMC said it plans to invest $100 billion over the next three years to increase capacity.
“We have acquired land and equipment, and started the construction of new facilities. We are hiring thousands of employees and expanding our capacity at multiple sites,” said Chief Executive Officer C. C. Wei during an online earnings briefing on Thursday.
TSMC reported a 19.4% increase in first quarter profit, beating expectations. It forecasts Q2 revenue between $12.9 billion to $13.2 billion, compared to $10.38 billion a year ago. Revenue growth is forecasted at about 20% for 2021 versus an earlier forecast in the mid-teens.
Notably, Apple is said to have postponed production of some MacBooks and iPads due to the global component shortage. The company is widely expected to unveil new iPad Pros this month and is likely to unveil new Apple Silicon iMacs and MacBooks this year.
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