Taiwanese chip maker TSMC plans to spend $ 100 billion in the next three years to increase chip production capacity, according to the company.
In the midst of the global chip supply crisis, leading companies in the industry and Apple’s partner TSMC announced that it plans to make a major investment in increasing manufacturing capacity as competitors such as Intel are looking for a bigger piece of the cake.
According to Bloomberg’s report, TSMC will invest $ 100 billion in three years to research and develop semiconductor technologies and expand chip production capacity. TSMC, the world’s largest contract chip maker, manufactures chips for Apple, Nvidia, Qualcomm and other giant customers, and chips from the Taiwanese company’s foundries are used in a variety of products from smartphones to refrigerators and cars.
TSMC is in high demand
TSMC told Reuters that 5G technologies are entering a period of higher growth as they are expected to increase demand for semiconductor technologies in the next few years. According to the company, the COVID-19 pandemic also accelerates digitalization in all respects. While some companies have to stop their production lines due to tight supplies, chip maker TSMC is seeing unprecedented demand during the global chip crisis affecting many industries.
The company is hiring thousands of employees and building new facilities to handle the worldwide demand for chips. The report stated that as a result of this climate, TSMC will reduce its current prices for one year, starting from 2022. The majority of TSMC’s activities are based in Taiwan, with several factories in China and a subsidiary in the United States producing small-scale customized products for local customers using mature lithographic technology.