The semiconductor industry continues to be an exciting topic for investors in 2022 due to the continued shortage. Today's video focuses on Taiwan Semiconductor Manufacturing (TSM -4.86%), a company that continues to thrive among the pent-up demand for semiconductors. Here are some highlights from the video.
- Taiwan Semiconductor shared great insight on the semiconductor industry during its earnings call on Jan. 13. It believes the total semiconductor market, excluding memory, will grow roughly 9% in 2022, and foundries, companies focusing on manufacturing semiconductors, will grow close to 20%. TSM believes it can outperform the market and grow in the mid-to-high 20s.
- Two markets in which TSM continues to see meaningful growth are the high-performance computing market and the automotive market as it continues to recover.
- TSM expects to spend roughly $40 billion to $44 billion on capital expenditures in 2022, up from the $30 billion it spent in 2021 and the $18 billion it spent in 2020. It will use 70% to 80% of capital expenditures to improve manufacturing of advanced tech products, which are semiconductors used in high-performance computing.
Click the video below for my full thoughts and analysis.
*Stock prices used were the midday prices of Jan. 13, 2022. The video was published on Jan. 13, 2022.
