TSMC will invest 100 billion US dollars in next three years to expand production capacity

TSMC declared that it would invest US$100 billion in the next three years to increase chip production capacity. TSMC stated on Thursday that it will invest 100 billion US dollars in the next three years to expand its capabilities in two areas, namely semiconductor manufacturing, and new technology research and development.

TSMC is the world’s largest semiconductor foundry company, accounting for half of the market. Previously, TSMC had announced that it would make US$28 billion in capital expenditures in 2021 to expand chip production capacity.

Moreover, the chip supply crisis in recent months has forced TSMC to further increase its capacity investment. In response to the current supply crisis, TSMC said it is working closely with customers to meet their requirements in a long-term sustainable manner.

TSMC and Samsung Electronics are currently the two most technologically advanced chip makers in the world, and both have put into production the 5nm process. And TSMC is currently building a 3-nanometer process chip factory in Taiwan, China, with a total investment of nearly 20 billion U.S. dollars.

Earlier, TSMC also announced that it would build a new chip factory in the United States for technology research and development. In addition, it is also preparing to set up related research and development institutions in Japan. The global automotive industry bears the brunt of the chip crisis and will face a loss of $60 billion in revenue.

Previously, almost all major automakers such as Ford, General Motors, and Nissan have announced the suspension of production and production reductions. It is worth mentioning that a few days ago, Intel, one of the top three semiconductor companies in the world, announced that it would invest US$20 billion to build two new chip factories in Arizona, USA.

In addition to entrusting TSMC to produce its own processors. Intel is also preparing to provide chip foundry services. However, for the current core shortage crisis, these new projects are “far from being able to dissolve the near thirst.”

Samsung Electronics has announced in the past that it will invest 100 billion US dollars in the next ten years to increase its semiconductor business. Samsung’s chip factory not only produces its own designed chips, but also gives OEMs, but the share of OEMs is about one-third of TSMC.

(Via)