TSMC to Spend $100 Billion Over the Next Three Years to Expand Chip Fabrication Capacity [Report]
Taiwan Semiconductor Manufacturing Co. (TSMC) plans to spend $100 billion over the next three years to expand chip fabrication capacity, reports Bloomberg.
“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. “TSMC is working closely with our customers to address their needs in a sustainable manner.”
A chip shortage, which first hit the car industry, has expanded to affect other electronic devices. TSMC’s CEO C.C. Wei said its fabs have been “running at over 100% utilization over the past 12 months,” but demand has still outpaced supply. New employees are being hired by the thousands and multiple new factories are under construction. Additionally, the company plans to suspend wafer price reductions for a year from the start of 2022.
Notably, Intel recently announced plans to spend $20 billion on two new factories in Arizona which would boost its chip production capabilities; however, that won’t address the short term problem.
More details in the full report linked below…
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