TSMC to spend at least $40 bn to boost chip production
Amid the acute chip shortage, the world is facing due to the supply chain constraints, Taiwan Semiconductor Manufacturing Co (TSMC) announced that it will invest up to $44 billion this year to expand chip manufacturing capacity.
In its latest earnings release, the Taiwanese firm said, it expects capital spending to be between $40 and $44 billion in 2022, up from a previous record of $30 billion in 2021.
According to a report in Nikkei Asia, the announcement puts “the chipmaker on track to meet its plan of investing $100 billion over the three years till 2023.”
“Entering 2022, we expect the supply chain to maintain a higher level of inventory compared to the historical standard or level, given the industry’s continued need to ensure supply security,” said TSMC CEO C.C., Wei.
He also increased the forecast for the company’s compound annual growth rate for “the next several years” to between 15 percent and 20 percent in US dollar terms.
“Our fourth quarter business was supported by strong demand for our industry-leading 5-nanometer technology,” said Wendell Huang, VP and Chief Financial Officer of TSMC.
Based on the Company’s current business outlook, management expects revenue for the first quarter of 2022 to be between $16.6 billion and $17.2 billion.
In May 2020, TSMC announced its intention to build and operate an advanced semiconductor fab in the United States, for better support to customers and partners and also to attract global talents. This facility, to be built in Arizona, will utilize TSMC’s 5-nanometer technology for semiconductor wafer fabrication and will have a capacity of 20,000 semiconductor wafers per month. Construction is planned to start in 2021 with production targeted for 2024.
[With Inputs from IANS]
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