Benzinga | Jan 13, 2022 11:42AM EST

Apple Supplier TSMC's Q4 Profit Jumps 16.4% Amid Higher Chip Demand

Apple Inc (NASDAQ:AAPL) supplier and the world's largest chipmaker Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM) said on Thursday its fourth-quarter profit jumped 16.4% to $5.98 billion, helped by rising demand for semiconductors.

What Happened: The Taiwan-based chip maker's quarterly sales jumped 21.2% to $15.8 billion year-on-year, and about 6% over the third quarter.

Demand for chips that are used in computers, smartphones and automobile sectors jumped during the quarter.

The company, which also counts Nvidia Corp (NASDAQ:NVDA) as a client, said shipments of 5-nanometer chips accounted for 23% of total wafer revenue; 7-nanometer accounted for 27%.

See Also: Apple Supplier TSMC Sees Q2 Profit Jump 11% On Higher Chip Demand

Why It Matters: A global semiconductor chip shortage has boosted demand as automakers, smartphone and appliance makers scramble to secure supplies.

TSMC last year said it planned to spend $100 billion over the next three years to expand its chip fabrication capacity to cater to the anticipated growth in demand for fifth-generation telecommunications (5G) technology.

Price Action: TSM shares closed 2.4% higher at $132.23 a share on Wednesday.

Photo: Courtesy of TSMC