TSMC says plans to invest $100 billion over next 3 years to meet chip demand

Contract chipmaker TSMC said on Thursday it plans to invest $100 billion over the next three years to increase capacity at its plants, days after Intel announced a $20 billion plan to expand its advanced chipmaking capacity. Taiwan Semiconductor Manufacturing Co, whose customers include Apple and Qualcomm, had already flagged a plan to spend of between $25 billion-$28 billion this year, to develop and produce advanced chips.

The move comes as global companies reel from a shortage of semiconductor chips that initially forced auto companies to cut production, but is now hurting makers of smartphones, laptops and even appliances amid a pandemic-fueled rise in demand.

“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.

Shares in TSMC rose nearly 2% in late morning trade. TSMC, like other technology firms, has benefited from the work-and-study-from-home trend during the Covid-19 pandemic, as people rushed to buy laptops, tablets and other equipment.

TSMC says plans to invest $100 billion over next 3 years to meet chip demand, CNBC, Apr 1