TAIPEI— Taiwan Semiconductor Manufacturing Co. , a significant chip provider to Apple Inc., mentioned it might make investments $100 billion over the following three years to extend manufacturing capability as demand surges.
The deliberate funding is a file for the world’s largest contract chip maker in addition to the broader business, analysts mentioned, at a time when chips are in brief provide world wide. In a press release, the corporate mentioned it expects robust demand over the following a number of years, a pattern pushed by development in 5G and excessive computing capabilities and accelerated by the Covid-19 pandemic.
“TSMC is working intently with our prospects to deal with their wants in a sustainable method,” the corporate mentioned Thursday.
In a letter to purchasers seen by The Wall Road Journal, Chief Government C.C. Wei mentioned that the corporate hadn’t been capable of sustain with demand over the previous yr regardless of operating its fabrication crops at over 100% utilization. Mr. Wei wrote that TSMC had began hiring 1000’s of latest workers, and deliberate to each construct new fabs and develop current ones.
The $100 billion allocation for the following three years could be greater than double what the corporate spent within the earlier three years, based on New Road Analysis analyst Pierre Ferragu.