Contract manufacturer TSMC plans to invest $ 100 billion over the next three years to increase production capacity at its factories. Bloomberg reported this with reference to the company’s statement.
TSMC, whose clients include Apple Inc and Qualcomm Inc, has already outlined a plan for 2021: the manufacturer will invest from 25 to 28 billion dollars to develop advanced microcircuits. This decision is due to a shortage of semiconductor chips, due to which large companies suffer multimillion-dollar losses. Automakers were hit hardest, with total lost profits of over $ 60 billion. And companies such as Volkswagen, General Motorsb Ford cut production and even suspended several factories.
CC Wei, CEO of TSMC, said that even the maximum utilization of factories did not help to eliminate the shortage of chips in the market: demand still exceeds supply. The company is now working on this problem by opening new factories and expanding its staff. And from the beginning of 2022, the manufacturer promises to suspend the traditional price reduction for conductors and freeze them for a year.
TSMC noted that the company is entering a period of higher growth rates. Popular 5G and HPC trends will drive demand for new semiconductor technologies. Therefore, the manufacturer is ready to invest in the development of microcircuits. In addition, quarantine restrictions have significantly accelerated digitalization in all areas. It should be noted that after this announcement, the company’s shares rose by almost 2%.
Most likely, TSMC’s decision to invest $ 100 billion in the production of processors is also related to competition in the microcircuit market. So, in March, Intel Corporation announced plans to directly compete with the Taiwanese company for providing chips to other organizations. The American competitor has already invested $ 20 billion in two new plants in Arizona. Apart from this, Samsung is also looking to expand its semiconductor business.
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