On April 15 local time, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) released its Q1 2021 Financial Results , with revenue meeting expectations and hitting new highs and net profit approaching $5 billion amid global chip shortage, a significant year-over-year increase.

According to the earnings data, revenue for the first quarter of 2021 is NT$362.41 billion (US$12.8 billion), up 16.7% year-over-year; net profit is NT$139.69 billion (US$4.981 billion), compared to market expectations of NT$134.019 billion (US$4.721 billion), up 19.4% year-over-year.CHIP

TSMC reports that the revenue from 5nm shipments accounts for 14% of total wafer revenue and 7nm shipments for 35% in the first quarter of 2021. Overall, sales of advanced technologies (7nm and more advanced) account for 49% of total wafer revenue.

In the first quarter of the 2021 earnings conference on Thursday, TSMC CEO Dr. CC Wei says that the R&D and most of the production of chips will continue in Taiwan. And the ongoing far-reaching chip shortage could extend to 2022.

TSMC says it expects production capacity to remain tight throughout this year. The company is working to improve productivity and expand capacity in several locations, and puts efforts to keep wafer prices at reasonable levels. It expects the shortage of automotive chips for customers to be relieved considerably in the next quarter.

Due to the drought, Taiwan has faced severe water scarcity, and the ripples have affected TSMC. However, in this conference, TSMC says the water shortage has no impact on its production.

TSMC expects second-quarter sales to reach $12.9 billion to $13.2 billion and an operating margin of 38.5% to 40.5%, with market expectations of 41.2%. In U.S. dollar terms, the company is on track to achieve growth of about 20% this year.