TSMC has announced that it will invest $100 billion over the next three years for expanding its manufacturing capacity and R&D. It is already planning to spend $28 billion in 2021, along with building more factories and hiring more employees. This is all happening at a time when the global chip shortage continues to affect virtually every technological sector. It is also happening as the company faces many challenges ranging from an ongoing drought to increased competition from Intel and Samsung. TSMC and its suppliers all saw their share prices rise after the news.
TSMC expects to invest US$100b over the next three years to increase capacity to support the manufacturing and R&D of advanced semiconductor technologies, TSMC is working closely with our customers to address their needs in a sustainable manner.
The company’s fabs have been running at over 100% utilization over the past 12 months, but demand still outpaced supply. Thousands of new employees are being hired and multiple new factories are under construction, TSMC will suspend wafer price reductions for a year from the start of 2022.
Sources: The Edge Markets, Kitguru