TSMC has just announced a new record for its first-quarter revenues this year, 2022. The Apple chipmaker was able to come up with record-high Q1 revenues despite the continuous component shortage and the lockdowns in China due to COVID.

TSMC Bags Higher Q1 Net Revenue Compared to Last Year

According to the story by 9to5Mac, despite many incidents in play that could have hindered TSMC from making record Q1 revenues, the company was able to reach a new record high. Despite the challenges, the Apple chipmaker was able to come up with 35% higher Q1 revenues compared to the same quarter of 2021.

The company issued a revenue report saying that as of March 2022, the net revenue reached almost $6 billion USD. Q1 revenues were up by 17% compared to its revenues in February and 33.2% from March of 2021.

TSMC Finds Workaround for Chinese Lockdowns

While TSMC released a one-page revenue report, a more detailed report is also expected to be released soon. As per Bloomberg, the chipmaker was able to find a way to work around the strict lockdowns in China.

TSMC was able to deal with the lockdowns in China by rearranging the company's production to adapt to demand changes. The company continued its production in China despite numerous factors, including certain factories being suspended amidst the local pandemic policy.

TSMC Spotted Demand Shifts Caused to COVID Restrictions

The Apple chipmaker announced that they would be rearranging priorities when it comes to production during the end of March to deal with the shift in demand. The company detailed that the demand shift was duly caused by restrictions in Shenzhen and Shanghai due to COVID.

TSMC announced that they weren't planning to revise the company's sales and capital spending forecasts for this year, as per Mark Liu, the company's chairman. The chipmaker also said in the past that they had seen certain signs of slowing demands for certain products like smartphones.

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TSMC Decided No Adjustments were Needed

However, the slower demands weren't seen as something that bad hence TSMC decided that there were no adjustments needed when it came to the company's overall growth targets. Despite the chipmaker's optimism, analysts are looking for reassurance regarding the company's plans to make sure they can still supply key materials to their clients.

The inventory strategy by the company when it comes to certain key materials like "industrial gases" and silicon wafers will mostly be focused on the results of Q1 briefly. This is in response to the rise of geopolitical tension and the slower global wafer capacity gains making supply predictions a bit foggier.

TSMC is expected to win orders for the 5G modem design for the upcoming Apple iPhone line-up in 2023.

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Written by Urian B.