CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Taiwan Semiconductor (TSMC) FY21 sales spike ahead of earnings

By Kevin Donovan

19:37, 11 January 2022

Illustration of a computer semiconductor
TSMC sales revenue spiked 4.8% in December from the previous month - Photo: TSMC

Taiwan Semiconductor Manufacturing (TSMC) stock is trading 3.21% higher Tuesday, following strong monthly and annual sales numbers ahead of its earnings report on Thursday, 13 January.

Hsinchu, Taiwan-based TSMC reported after the market close Monday that its sales revenue spiked 4.8% in December from the previous month and 32.4% from the December 2020 reporting period. Additionally, TSMC reported full-year 2021 revenue jumping 18.5% to a US dollar equivalent of roughly $57.3bn (£42.1bn), compared to 2020 full-year revenue.

TSMC stock moved 3.21% higher in mid-day trading Tuesday to $129.03 from Monday’s $125.02 closing share price. TSMC stock trades on the NYSE under the ticker TSM.

TSMC is currently scheduled to report its fourth-quarter 2021 financials before the US market open Thursday. Consensus estimates are for TSMC to report $0.40 per-share earnings on $15.7bn US dollar equivalent in revenue. TSMC has itself issued quarterly revenue guidance in the $15.4bn to $15.7bn US dollar equivalent range.

TSMC’s recent earnings reports have wildly missed Wall Street consensus estimates, missing its 3Q 2021 per-share earnings by over 80%, while slightly beating revenue estimates by 0.29%. In the prior quarterly reporting period – 2Q 2021 – TSMC beat consensus per-share earnings by over 463%, while missing revenue estimates by 0.02%.

TSMC December Revenue ReportTSMC December Revenue Report - Photo: Taiwan Semiconductor Manufacturing

What is TSMC doing with all this money?

TSMC recently announced a joint venture with Sony Semiconductor Solutions to build a $7bn semi-conductor fabrication foundry in Kumamoto, Japan, called Japan Advanced Semiconductor Manufacturing (JASM). Details of the joint venture include Sony Semiconductor’s $500m investment for a less-than 20% stake in JASM.


147.43 Price
+8.350% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.54


6.49 Price
-1.530% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.04


15.56 Price
-4.230% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.16


475.08 Price
+2.100% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.14

The JASM fabrication foundry, with a 45,000 monthly chip capacity, is expected to begin production in 2024.

“While the global semiconductor shortage is expected to be prolonged, we expect (this) partnership with TSMC to contribute to securing a stable supply of logic wafers, not only for us but also for the overall industry,” said Sony Semiconductor CEO Terushi Shimizu, in a release announcing the joint venture.

N4X process technology

Announced late last year, TSMC has developed a new N4X chip process technology, for use in high-performance computing chips. The N4X represents TSMC’s foray into the high-performance computing sector, leverages TSMC’s experience with five-nanometre volume production to enhance maximum clock frequencies.

The NX4 process technology boosts performance by 15% over its N5 chip process and 4% over its N4P process technology.

The demands of the HPC segment are unrelenting, and TSMC has not only tailored our ‘X’ semiconductor technologies to unleash ultimate performance but has also combined it with our 3DFabric advanced packaging technologies to offer the best HPC platform,” noted TSMC senior vice president of business development Kevin Zhang.

Read more: GlobalFoundries IPO raises .5bn for bn valuation

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading