TSMC reports record quaterly profit, expects strong growth in coming years

Taiwanese chip making giant TSMC has reported a record quaterly profit.

The record profit aided TSMC’s vision of an accelerating strong growth in coming years.

TSMC also plans to spend at least a third more than last year.

TSMC posted a 16.4% rise in fourth-quarter profit, propped by a rising demand for semiconductors used in smartphones, laptops and other gadgets.

TSMC expects to lift capital spending to between $40 billion and $44 billion this year. Last year it spent $30 billion.

The company set a long-term target of “53% and higher” for its gross margins, up from a previous target of “50% and higher”.

TSMC forecast first-quarter revenue to be in the range of $16.6 billion to $17.2 billion, compared with $12.92 billion in the same period a year earlier.