Chip Crisis Could Continue Until Next Year

Chip crisis could continue until next year. The world's largest chip manufacturer made an assessment on the subject.

Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest chip maker, has kept its revenue estimates high for this year, with the impact of the global chip crisis. The company announced that the chip crisis, which caused giant automotive companies from GM to Nissan, from Volkswagen to Ford to suspend production, will decrease. On the other hand, CEO C.C. Wei told analysts in a teleconference that the crisis could possibly continue throughout 2021 and next year. In the first quarter of 2021, the company's net profit increased 19 percent to Taiwan $ 139.7 billion ($ 4.9 billion). The expectation was Taiwan's 136.2 billion dollars. Its revenues increased by 17 percent during this period and were recorded as 362.4 TD. In addition, the company announced that it will invest $ 100 billion in the next 3 years. In addition, it was stated that sales could reach 13.2 billion dollars in the second quarter of the year. Analysts' expectation was that it would be $ 12.8 billion. During the coronavirus epidemic, the increasing demand for chips used in many industries, from smartphones to televisions, computers to automobiles, attracted all the attention from the Taiwanese company. TMSC shares doubled last year. The company has risen 1.1 percent today before the announcement of its profit figures.