“Gross margin increased mainly due to cost improvement and value-selling efforts,” Chief Financial Officer Wendell Huang told investors Thursday, noting that a decline in the Taiwan dollar provided a major boost. Expenses tend to fall when the company gets more proficient with a new technology process.
Last year, Taiwan Semiconductor Manufacturing Co. stamped its mark on the global economy with record sales and unrivalled leadership over the world’s most advanced chips. It looks to be even more dominant in 2022, and is flexing its muscles accordingly.
Investors will be cheered by record earnings, which beat even the highest of analyst estimates, and a widening gross margin that comes despite ongoing inflationary pressures coupled with constraints in procuring equipment and materials. They’ll also be pleased that the revenue outlook for this quarter is well above expectations.
