TSMC to spend $100 billion over three years to grow capacity
Taiwan Semiconductor Manufacturing Co. plans to spend $100 billion over the next three years to expand its chip fabrication capacity.
TSMC, the world’s leading manufacturer of advanced semiconductors, already planned a record capital expenditure of as much as $28 billion this year, but recent trends and developments have pushed for even more capacity. Now at the center of a global chip supply crunch, Taiwan’s biggest company has pledged to work with customers across industries to overcome a deluge of demand.
“TSMC expects to invest USD$100b over the next three years to increase capacity to support the manufacturing and R&D of advanced semiconductor technologies,” the company said in a statement responding to local media reports. “TSMC is working closely with our customers to address their needs in a sustainable manner.”
Carmakers have been hit particularly hard by the chip shortages, with estimates for lost revenue of more than $60 billion. Ford Motor Co. just said it would temporarily suspend production at two plants that make its best-selling F-150 pickup as the global semiconductor shortage worsens. F-Series trucks are Ford’s biggest moneymakers and any lost production has a direct impact on the bottom line.
U.S. rival Intel Corp. in March announced plans to directly compete with TSMC for the business of manufacturing chips for other companies, with a $20 billion investment in two new factories in Arizona. South Korea’s Samsung Electronics Co. is also spending in excess of $100 billion over a decade to expand its semiconductor business.
By Debby Wu