TSMC Responds To Chip Shortage With $100 Billion Investment
TSMC is taking the lead in responding to current chip shortage in the industry, according to reports, on April 1, TSMC announced that the company would invest 100 billion US dollars during the next three years to increase chip production capacity. TSMC stated on Thursday the company is ready to invest $100 billion in the next three years to expand its capabilities in two areas, semiconductor manufacturing and new technology research and development.
TSMC is the world’s largest semiconductor manufacturing company, accounting for half of the market. Previously, TSMC had announced that it would make $28 billion in capital expenditures (mainly building factories) in 2021 to expand chip production capacity. However, the chip supply crisis in recent months has forced TSMC to further increase its capacity investment.
Responding to the current supply crisis, TSMC said it is working closely with customers to meet their needs in a long-term sustainable manner.
TSMC and Samsung Electronics are currently the two most technologically advanced chip manufacturers in the world, and both have already put into production the 5-nanometer process. And TSMC is currently building a 3-nanometer process chip factory in Taiwan, China, with a total investment of nearly $20 billion.
Previously, 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 reductions.
It is worth noting that a few days ago, Intel, one of the world’s top three semiconductor companies, 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 manufacturing services. However, for the current core shortage, these new projects are “far from being able to dissolve the near thirst, as coronavirus complications are still lurking around which puts every business under pressure around the world.
Samsung Electronics has announced in the past that it will invest $100 billion in the next ten years to expand its semiconductor business. Samsung’s chip factory not only produces its own designed chips, but also provides OEMs, but the OEM share is about one-third of TSMC.
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