TSMC books 19% Q1 growth, chip shortage to last

Taiwan Semiconductor Manufacturing, or TSMC, on Thursday (April 14) said it is doing all it can to increase productivity

and alleviate a worldwide chip shortage.

But it warned tight supplies will likely continue into next year.

The world's biggest contract chipmaker reported a 19.4% rise in first-quarter profit off the back of strong chip demand amid a global shift to home working.

TSMC, whose clients include Apple and Qualcomm, had already flagged "multiple years of growth opportunities" as the global health crisis fuelled demand for advanced chips to power devices such as smartphones and laptops.

Business was boosted by the chip shortage that initially forced automakers to cut production.

But it's now also hurting manufacturers of smartphones, laptops and other appliances too.

On Thursday, TSMC said it expects the chip shortage for its auto clients to be greatly reduced from the next quarter.

TSMC said this month it plans to invest $100 billion over the next three years to increase capacity at its plants.

Its shares have risen about 16% so far this year and were up over a percent on Thursday.