Taiwan’s TSMC invests $ 100 billion in chipmaking to avert further shortage

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Investment represents massive increase from $ 25-28 billion TSMC (TSM) planned to spend to manufacture advanced chips this year.

“In order to meet demand,” TSMC plans to use the funds to “increase the capacity of [research and development] advanced semiconductor technologies, ”the company said in a statement to CNN Business.

The company has previously said that industry “megatrends” like 5G and high performance computing will fuel strong demand for semiconductor technology in the coming years. And he added on Thursday that the Covid-19 pandemic “is accelerating digitization in all its aspects”.

Intel invests $ 20 billion in new US chip manufacturing plants as part of turnaround plan

TSMC shares climbed more than 2% in Taipei on Thursday.

Global chipmaking giants are rushing to expand chip manufacturing capacity to meet high demand as a global chip shortage has hampered industries ranging from automobiles to video games. Last week, Intel (INTC) unveiled a plan to invest $ 20 billion in two new chip manufacturing facilities in the United States. Intel’s move was intended to reaffirm its position as the clear leader in the semiconductor industry. Delays in the production of next-generation chips have allowed competitors TSMC and Samsung (SSNLF) to run forward.

In January, TSMC said it would spend $ 25 billion to $ 28 billion this year, up from $ 17 billion in 2020. It added that about 80% of that amount be used for advanced processing technologies.

The company enters “another period of higher growth,” said Wendell Huang, vice president and chief financial officer of TSMC, during a presentation of the results in January.

– Clare Duffy contributed to this report.

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