Taiwan Semiconductor Manufacturing Company (TSMC) closed off the final quarter of 2021 with record revenues, continuing the Taiwanese company’s period of grand profits as it struggles to keep pace with unprecedented demand for semiconductor devices.
The manufacturer took in NT$438.18 billion ($15.8 billion) in revenue in the final quarter of 2021, constituting the sixth consecutive quarterly sales record by the tech company, including NT$155.38 billion ($5.6 billion) in December alone.
The Taiwanese company, which is used by companies such as Apple and Qualcomm for the supply of semiconductor devices used in smartphones, household appliances, and LED lights, has become pivotal in the aftermath of the CCP (Chinese Communist Party) virus, which causes COVID-19. A global shortage of semiconductor chips, occasioned by supply chain issues and a pandemic-era surge in global demand, has resulted in stunted manufacturing of in-demand devices in several industries, but it has allowed companies such as TSMC to hike prices and reap massive profits.
TSMC is noteworthy not only for its business stature but for its geopolitical significance in the tensions concerning the island of Taiwan, which is claimed by the Chinese communist regime, but de facto ruled by its own local government.
Founded in 1987, TSMC operated the first dedicated semiconductor foundry, and its early entry into the emerging industry has allowed it to flourish as the largest semiconductor foundry in the world.
The Taiwanese semiconductor industry has been a persistent thorn in the side of China’s geopolitical ambitions in recent years, and attempts by the Chinese regime to compete in the semiconductor industry have floundered.
In the face of a delicate geopolitical situation and incredible demand for semiconductors, TSMC has endeavored to expand its operations abroad, laying the groundwork for facilities beyond its native Taiwan.
Last summer, TSMC announced its plans to establish new facilities in the United States and Japan in order to address global demand for semiconductors.
In November, the company announced its partnership with Sony to establish the joint venture Japan Advanced Semiconductor Manufacturing, with production targeted to begin in Kumamoto, Japan, in 2024.
The global shortage of semiconductors has allowed TSMC to emerge as one of the most lucrative international companies of the pandemic as several industries scramble to provide semiconductors for their devices.
While world powers are attempting to curtail their dependence on Taiwan for semiconductor technology, TSMC will likely continue to collect profits from manufacturers desperate to supply semiconductors for their products.