Residents queue to undergo nucleic acid tests for the Covid-19 coronavirus in Xi'an in China's northern Shaanxi province on December 29, 2021. - China OUT (Photo by AFP) / China OUT (Photo by STR/AFP via Getty Images)
China lockdown is hitting world's biggest chipmakers
02:09 - Source: CNNBusiness

Taiwanese chip firm TSMC expects strong growth to accelerate in coming years due to booming semiconductor demand, as the tech giant on Thursday reported a record quarterly profit and said it plans to spend at least a third more than last year.

Soaring demand for semiconductors used in smartphones, laptops and other gadgets during the Covid-19 pandemic has led to an acute chip crunch, forcing automakers and electronics manufacturers to cut production but keeping order books full at TSMC and other chipmakers.

Taiwan Semiconductor Manufacturing Co., a major Apple (AAPL) supplier that also has customers such as Qualcomm (QCOM), posted a 16.4% rise in fourth-quarter profit.

The company said it expects to lift capital spending to between $40 billion and $44 billion this year. Last year it spent $30 billion.