TSMC Plans to Invest $100 Billion Over Next Three Years to Meet Chip Demand


Taiwan Semiconductor Manufacturing Company stated Thursday it was planning to make investments $100 billion (roughly Rs. 7,33,620 crores) over the subsequent three years to meet hovering demand as a world scarcity of chips hits the auto and different industries. 

The announcement got here after US chip titan Intel unveiled plans final week to spend $20 billion (roughly Rs. 1,46,750 crore) constructing two new crops in Arizona as a part of a plan to increase manufacturing at residence and in Europe.

Intel’s transfer comes as international locations and corporations in these areas look to cut back reliance on crops in Asia for semiconductors, that are utilized in a rising array of merchandise equivalent to vehicles.

Taiwanese high-tech chip foundries are a number of the world’s greatest and most superior, and European and US automobile producers have been reaching out to Taipei for assist plugging the shortages. 

TSMC, the world’s largest contract microchip maker, stated its new funding plans will improve capability to sustain with demand. It didn’t specify the place the brand new foundries can be constructed.

“We are entering a period of higher growth as the multiyear megatrends of 5G and High Performance Computing are expected to fuel strong demand for our semiconductor technologies in the next several years,” it stated in a press release. 

“In addition, the COVID-19 pandemic also accelerates digitalisation in every aspect.” 

The firm has stated the auto business was a prime precedence however warned its factories have been already working at full capability. 

Semiconductor shortages, brought on by provide chain priorities altering due to the coronavirus pandemic, have compelled some main auto producers to droop manufacturing strains. 

Shortages additionally seem to be spreading to a variety of digital gadgets, together with smartphones, video games consoles, tablets, and laptops. 

Most of TMSC’s factories are positioned in Taiwan the place they concentrate on making a number of the world’s smallest and quickest chips. 

Last 12 months, the corporate stated it deliberate to spend $12 billion (roughly Rs. 88,050 crore) on a state-of-the-art semiconductor foundry in Arizona, its second manufacturing web site within the United States.

Taiwan has stated it should strive to ramp up manufacturing of chips however a worsening drought may hamper its plans and the federal government warned it was making ready “for the worst”.

Manufacturing semiconductors is a water-intensive business.  

The dry spell got here as no typhoons made landfall in Taiwan final 12 months for the primary time in 56 years, leaving some reservoirs at their lowest ranges in years. 

© Thomson Reuters 2021

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