Chip manufacturer TSMC plans to dramatically boost its production capacity for this year. To that end, the company will invest up to $44 billion.
TSMC announced in April 2021 that it would invest $100 billion in new factories and research, into new chip technology, over the next few years. The investment would be spread over three years. Now it appears that TSMC anticipates most of the cake for 2022. This year, the Taiwanese chip maker plans to invest between $40 billion and $44 billion, including in more capacity to meet rising demand for microchips. Just last year, TSMC invested $30 billion.
High demand
TSMC assumes that demand for microchips will remain high even if certain market segments do slow down. Should the laptop and smartphone markets shrink, for example, the automotive sector will be only too happy to eat up any freed-up capacity. “Even if the market were to undergo a correction, we believe it would be less volatile for TSMC thanks to our leadership position and the structural mega-trend that is underway,” CEO C. C. Wei told Reuters about this.
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TSMC pumps $44 billion into chip production by 2022
TSMC is currently the most technologically advanced chip manufacturer in the world. The company stole that position from Intel, which has not yet buried the hatchet. In other words, TSMC needs to invest to stay ahead of Intel. The Taiwanese technology giant builds microchips for AMD and Apple, among others.