Taiwan Semiconductor To Invest $100 Billion in Next Three Years

Image source: Taiwan Semiconductor

Taiwan Semiconductor Manufacturing Co Ltd (NYSE: TSM ), the world’s largest contract chipmaker, plans to invest $100 billion over the next three years to expand its manufacturing capacity to keep up with rising demand. 

On Thursday, the company said it will use the funds to “increase capacity to support the manufacturing and [research and development] of advanced semiconductor technologies.” 

“We are entering a period of higher growth as the multiyear megatrends of 5G and high-performance computing are expected to fuel strong demand for our semiconductor technologies in the next several years,” TSMC said in a statement to Reuters.

“In addition, the COVID-19 pandemic also accelerates digitalization in every aspect," it said.

TSMC, whose customers include Apple Inc (Nasdaq: AAPL ) and Qualcomm Inc (Nasdaq: QCOM ), had already flagged a plan to spend $25 billion to $28 billion to develop and produce advanced chips. 

Last year, the company announced plans to build a $12 billion factory in Arizona. Within the US, TSMC has a semiconductor wafer fabrication facility in Washington and design centers in California and Texas. 

TSMC is also expanding in multiple cities in Taiwan, including a new 3-nanometer chip facility, Nikkei Asia reported.

The move comes as a global semiconductor shortage drags on, affecting production in a number of industries including cars, smartphones and laptops.

Several other chipmakers have also signaled that they'll be boosting investments to meet rising demand.

Last week, Intel Corp (Nasdaq: INTC ) announced plans to pour $20 billion into expanding production by building two new factories in Arizona.

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Source: Equities News