‘Over 100% Utilization’: TSMC Reports Double-Digit Monthly, Quarterly Revenue Gains
Taiwan Semiconductor Manufacturing Company’s (TPE:2330) (TSMC) March revenue hit record highs, the company reported Friday, capping off a historic quarter for the world’s largest semiconductor foundry.
TSMC said that March revenue hit $4.5 billion (NTD 129.13 billion), climbing 21.2% from February and up 13.7% from a year prior. Overall for its first quarter, the firm saw its revenue climb 17% to $12.7 billion (NTD 362.4 billion) narrowly beating analyst estimates of NTD 360.2 billion.
In a note to customers earlier this year, seen and verified by multiple other media outlets, TSMC CEO C.C Wei wrote that the company’s fabs have been “running at over 100% utilization over the past 12 months,” but demand is still outpacing supply. In order to match market demand, the company plans to spend $100 billion over the next three years. $28 billion of this will be spent in 2021.
TSMC’s stock is set to close the trading day in Taipei down 1%, but up 2% on the week. In the last six months, the stock is up 32.61% and over 100% on-year.
Earlier this week, TSMC’s smaller rival, United Microelectronics (TPE:2303) reported that its March revenue hit a record high of $584.5 million (NTD 16.62 billion) with first-quarter revenue at $1.65 billion (NTD 47.1 billion).
When Will Water Woes Hit TSMC’s Bottom Line?
But both companies are up against a historic drought that’s pushing water supplies in Taiwan to all-time lows. TSMC’s facilities in Hsinchu use 63,000 tons of water a day, which is proving to be a challenge as the city’s reservoirs are bone-dry.
To mitigate the impact of the drought on operations, the company has signed a deal for daily deliveries from more than 100 water tankers. While most of Taiwan’s center and south are suffering from a drought water supply in the north is still relatively plentiful. The government has been aggressively cloud seeing above reservoirs, but so many in the country are still under 10% capacity. With a mild typhoon season predicted for the summer of 2021 relief might not come for some time.
Given the severity of the drought and receding waters, netizens and researchers were able to find a traditional Thao canoe that had been sunk for 20 years.
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