TSMC intends to invest $ 100 billion in the short term in its production and research and development tools, in order to meet a demand that is putting its facilities in overheating.
The Taiwanese semiconductor maker is at the forefront of supplying Apple – of which it is a crucial partner for iPhone, iPad and Mac processors – but also Qualcomm, Broadcom, Mediatek, Nvidia, AMD (which then supplies Microsoft and Sony for their latest consoles) and even Intel.
Having become a must-see destination, TSMC has declared that it wants to invest this amount over the next three years. CC Wei, the executive director of TSMC wrote to his customers that his factories have “ operated at more than 100% of their capacity in the last 12 months ”Without this being sufficient to meet demand. We saw it with availability at half mast for new consoles or repercussions in the automotive industry.
Thousands of employees have been recruited and several factories are under construction. Finally, TSMC has decided to eliminate the price reductions granted so far on its wafers, for one year from 2022.
The size of the expenditure planned by TSMC – whose equity amounts to 28 billion – can be compared to that of Intel announced last week. Pat Gelsinger, his new boss, has planned to spend $ 20 billion building two new factories in Arizona (which already has four). All things are not equal, but TSMC has at least 12 wafer factories and Intel claims 15.
TSMC and Intel aren’t the only ones anticipating ever-increasing demand. A year ago, Samsung declared its intention to spend 105 billion dollars by 2030 in its semiconductor business.