TSMC to invest $44 billion to further increase production capacity15. January 2022
TSMC to invest $44 billion to further increase production capacity
Taipei, Jan. 15, 2022.
Taiwan Semiconductor Manufacturing Co. plans to spend $40 billion to $44 billion to expand and upgrade chip production capacity in 2022, a record for the company. The investment boost represents a 32% to 47% increase from the record $30 billion spent in 2021.
Apple’s chipmaker had previously announced plans to spend $100 billion to expand production capacity by 2023. Demand for TSMC chips is driven by strong demand in automotive, high-performance computing, data centers and other tech sectors, CEO C.C. Wei said during a conference call .
Last year, TSMC posted record revenue of $57 billion, up 18.5% from the previous year. The company reported a 16.4% increase in net income in the fourth quarter of 2021, and Wei forecasts that sales in 2022 will increase by at least 25% compared with 2021. The company now expects average annual revenue growth of 15% to 20% over the next several years.
TSMC is Asia’s most valuable publicly traded company and the world’s largest contract chip manufacturer. Apple accounts for more than 25% of sales, followed by MediaTek, AMD, Qualcomm, Broadcom, Nvidia, Sony, Marvell, STM and ADI, according to Bloomberg and Digitimes.