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Technology Stocks : ASML Holding NV
ASML 956.22+2.4%May 24 4:00 PM EDT

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Tobias Ekman
From: BeenRetired4/10/2021 7:22:10 AM
1 Recommendation   of 32350
TSMC CC: "Today, as we enter another period of higher growth"...


Next, let me talk about our capital intensity outlook. As we have said previously, our long-term capital intensity is in the mid-30s percentage range. However, when we enter a period of higher growth, our capex needs to be spent ahead of the revenue growth that will follow, so our capital intensity will be higher. For example, during 2010 to 2014, our capex spending increased threefold as compared to the previous few years and our capital intensity range between 38% to 50%. Because of the increased investment, we were able to capture the growth opportunities and deliver above 15% growth CAGR from 2010 to 2015. Today, as we enter another period of higher growth, we believe a higher level of capacity -- capital intensity is appropriate to capture the future growth opportunities. We now expect a higher growth CAGR in the next few years, driven by the industry megatrends of 5G and HPC-related applications, which C.C. will discuss in more detail.
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