Apple processor making partner TSMC says the worldwide chip shortage will last into 2022 and possibly longer. TSMC says that it is going to take “a couple of years” for the impact of the global chip shortage to be over.
TSMC’s comments came as the company announced its earnings and discussed its future expansion plans. TSMC’s comments confirm reports from other chip foundries.
Reuters reports that TSMC’s earnings beat expectations with a 19.4% rise in the company’s first-quarter 2021 profits. January-March revenue was $12.92 billion, for a profit of $4.93 billion. The company said the earnings increase was due to “stronger engagement with more customers.”
The chipmaker also discussed its expansion plans.
“We have acquired land and equipment, and started the construction of new facilities,” said TSMC CEO CC Wei. “We are hiring thousands of employees and expanding our capacity at multiple sites.”
Chip demand has risen during the coronavirus pandemic, as demand has increased from users working from home. TSMC says it sees “multiple years of growth opportunities” because of this.
US President Biden has called the chip shortage a “national security issue,” and has begun what he describes as significant investments into the semiconductor and battery industries.