TSMC asserts it is still on track to hit 2021 sales targets despite silicon crisis

TSMC's latest earning call for investors reportedly contains some optimism in the face of the ongoing chip shortage. It has reported indicated to interested parties that it foresees a reprieve from these supply issues; on the other hand, it might not take effect until 2022, and could start to benefit the automotive sector first.

This market segment has been particularly badly hit, thanks in part to the microcontroller units (MCUs) vital to modern-day car completion. However, TSMC has now reported that it increased the production of these components by 30% in the first half of 2021 (1H2021) compared to 1H2020, to contribute to an estimated YoY increase of 60% for the entire year.

The foundry is, moreover, now linked to plans for a new facility located in Japan dedicated to the "mature" processes on which parts such as automotive MCUs are based in order to hit this goal. In terms of more up-to-date, ~5nm or smaller chipsets, their sales did drop by 3% in 2Q2021, in accordance with typical seasonal lulls.

However, TSMC might expect to see this arm of its business pick up in the current quarter: for example, its order from Apple for iPhone 13 SoCs is now said to equal 90 million units. Accordingly, the manufacturer now projects its 3Q2021 revenue might go up to ~US$14.9 billion, or up to 23%.

Based on these estimates, and on its actual 2Q2021 net profits ($4.8 billion, or +11.2% YoY), TSMC now asserts that it will definitely hit its 20% YoY sales growth targets. Then again, the same reported net profit fell slightly below earlier market-analysis estimates, as did the company's gross margin. This might have contributed to a 1.5% dip in its US share price on July 15, 2021.

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