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

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Taiwan Semiconductor Manufacturing Firm stated Thursday it was planning to take a position $100 billion (roughly Rs. 7,33,620 crores) over the subsequent three years to fulfill hovering demand as a worldwide 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 spice up manufacturing at residence and in Europe.

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

Taiwanese high-tech chip foundries are a few of the world’s greatest and most superior, and European and US automotive 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 enhance capability to maintain up with demand. It didn’t specify the place the brand new foundries can be constructed.

“We’re getting into a interval of upper development because the multiyear megatrends of 5G and Excessive Efficiency Computing are anticipated to gasoline robust demand for our semiconductor applied sciences within the subsequent a number of years,” it stated in an announcement. 

“As well as, the COVID-19 pandemic additionally accelerates digitalisation in each side.” 

The corporate has stated the auto trade was a high 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 pressured some main auto producers to droop manufacturing strains. 

Shortages additionally look like spreading to a variety of digital objects, together with smartphones, video games consoles, tablets, and laptops. 

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

Final 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 in the USA.

Taiwan has stated it is going to attempt 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 trade.  

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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