TSMC‘s 2020 revenue and net profit after tax both hit record highs. 2020 saw TSMC’s chairman publicly announce a halt to supplying chips to huawei following further U.S. sanctions against the company, followed by increased orders and soaring results from TSMC’s international majors.
TSMC’s earnings data released on Jan. 14 showed that for the full year 2020, TSMC’s total revenue and profit were both at record highs – total revenue of approximately $47.87 billion, up 25.2% from 2019; and net profit after tax of approximately $18.5 billion, up 50% from 2019.
The fourth quarter of 2020 also reported record earnings for the same period in history, with revenue totaling approximately $12.9 billion and an after-tax surplus of $5.2 billion.
TSMC will further expand its investments in 2021, with capital expenditures expected to reach $25 billion to $28 billion, an increase of more than 45% year-over-year in 2020.
The second trading day of the announcement of earnings (January 15), TSMC shares reached a record high in early trading, rising to 625 Taiwan dollars; TSMC’s U.S. ADR once rose to $134.65 during the day, a record high, closing at $126.45, up 6.06%.
No Huawei TSMC performance record high
TSMC announced the results of the day, the mainland Caixin report mentioned: “TSMC even lost Huawei, a major customer, the performance still hit a new high.
Netizens have said, “It looks like TSMC is better off without Huawei.” “The world is not short of China, yet China cannot be separated from the world.” “After all, the world is not only Huawei. The unscrupulous media hate to trick the people into believing that the world doesn’t turn without Huawei.”
The U.S. Department of Commerce announced further sanctions against Huawei on May 15, 2020, due to Huawei’s ties to the Chinese Communist military and alleged surveillance and intellectual property theft. Beginning September 15, 2020, foreign companies using U.S. technology and equipment must obtain permission from the U.S. government before selling chips to Huawei.
At TSMC’s earnings presentation on July 16, 2020, Chairman Deyin Liu said that TSMC has not accepted any new orders from Huawei since May 15 and has no plans to supply Huawei after September 14.
TSMC’s performance has continued to rise since it announced its disconnection from Huawei. TSMC’s share price rose to a record high in late July 2020, and major manufacturers such as Apple and Intel increased orders to TSMC.
TSMC officially announced on the day the U.S. announced new regulations to sanction Huawei that it would build a 5nm chip factory in Arizona, becoming TSMC’s second production site in the U.S., the first being in Camas, Wash.
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