TSMC Approves $2.8 Billion for Capacity Expansion in Response to Global Chip Shortage

TSMC said its board had approved the spending "for the purpose of installing mature technology capacity."

By Reuters | Updated: 23 April 2021 10:21 IST

TSMC Approves $2.8 Billion for Capacity Expansion in Response to Global Chip Shortage

TSMC has flagged "multiple years of growth opportunities" as the COVID-19 pandemic fuels demand

Highlights

TSMC's clients of which include Apple and Qualcomm
TSMC has said it is working hard to increase productivity
Its business has also been boosted by the chip shortage

TSMC board has approved $2.89 billion (roughly Rs. 21,690 crores) in spending to increase capacity, the company said, responding to a global chip shortage that has affected carmakers in particular.

In a brief statement, the world's largest contract chipmaker said its board had approved the spending "for the purpose of installing mature technology capacity".

It did not elaborate.

The company this month said that it plans to invest $100 billion (roughly Rs. 7,50,300 crores) over the next three years to increase capacity at its plants, days after Intel announced a $20 billion (roughly Rs. 1,50,000 crores) plan to expand its capacity.

[Sponsored] Samsung Galaxy S24: The Ultimate Camera Phone With Smarter On-Device AI

TSMC, clients of which include Apple and Qualcomm, has said it is working hard to increase productivity and alleviate the worldwide shortage but that supply tightness is likely to continue into next year.

The company has flagged "multiple years of growth opportunities" as the COVID-19 pandemic fuels demand for advanced chips to power devices such as smartphones and laptops.

But its business has also been boosted by the chip shortage that initially forced automakers to cut production but is now also hurting manufacturers of smartphones, laptops, and even household appliances.

What’s Causing the Global Chip Shortage and How Does It Affect You

Is OnePlus 9R old wine in a new bottle — or something more? We discussed this on Orbital, the Gadgets 360 podcast. Later (starting at 23:00), we talk about the new OnePlus Watch. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.