TSMC's massive capital spending plans for 2021 could pressure its earnings, analyst says

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The world's largest contract chipmaker said it expected to spend between $25 billion to $28 billion in 2021 to make advanced chips.

on Thursday, the world's largest contract chipmaker said it expected to spend between $25 billion to $28 billion in 2021 to make advanced chips."We have been expecting a flattish revenue guide with a double-digit revenue growth target for the whole year.

He explained there were two potential problems that could put pressure on TSMC's future earnings. First, TSMC's decision was likely influenced by an increased competitive threat from Samsung. Hosseini said revenues associated with capital expenses allocated to tackle competition will not materialize until late-2022.

The second problem has to do with a diversification of TSMC's revenue sources, according to the analyst. For a long time, the chipmaker's revenues were driven by chipsets made for iPhones.

 

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lol... $TSM earning pressure? the only pressure is too few people for too many orders

90% of news about covid and trump

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