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TSMC Fourth-Quarter Net Profit Rose 23% — Earnings Review

By Kosaku Narioka

 

Taiwan Semiconductor Manufacturing Co. reported fourth-quarter results Thursday. Here's what you need to know.

 

NET PROFIT: TSMC's fourth-quarter net profit rose 23% from a year earlier to 142.77 billion New Taiwan dollars (US$5.10 billion) from NT$116.04 billion. That beat the estimate of NT$136.93 billion taken from a FactSet poll of analysts.

 

REVENUE: Fourth-quarter revenue increased 14% to NT$361.53 billion.

 

WHAT WE WATCHED:

--CHINA: TSMC's revenue from customers in China accounted for 6% of fourth-quarter revenue, down from 22% a year earlier, while revenue from North America made up 73% of the total, up from 59%. The U.S. Commerce Department in May restricted global chipmakers that use U.S. technology from supplying semiconductors to Huawei Technologies Co. Analysts have said TSMC was able to offset its Huawei sales losses by reallocating production capacity to other clients.

--OUTLOOK: TSMC expects its first-quarter revenue at between US$12.7 billion and US$13.0 billion, supported by demand related to high-performance computing and a recovery in the auto segment. That compares with fourth-quarter revenue of US$12.68 billion. TSMC said it expects capital expenditures at between US$25 billion and US$28 billion in 2021.

 

Write to Kosaku Narioka at kosaku.narioka@wsj.com

 

(END) Dow Jones Newswires

January 14, 2021 03:26 ET (08:26 GMT)

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