Home > Latest News > TSMC Earmarking $60+ Billion To Fix Chip Shortage

TSMC Earmarking $60+ Billion To Fix Chip Shortage

Taiwan Semiconductor Manufacturing Co. has released a record spending roadmap that will see the leading chipmaker spending north of A$60 billion in 2022 alone, in order to mend the ongoing chip shortages that have crippled the industry.

TSMC is projecting average sales growth of 15-20 per cent annually, doubling its initial expectations. The $60 billion is earmarked to increase, upgrade, and expand its chipmaking capacity during the year.

For comparisons sake, Intel is also planning major production expansions, but has only allocated between A$34.3-38.4 billion to the cause.

TSMC reported a 16 per cent profit leap for its December quarter, with sales reaching $21.7 billion during the period.

Chairman Mark Liu told analysts on a conference call that “the semiconductor industry growth will continue to be fuelled by the structural mega trends of 5G and high-performance computing.”

“TSMC’s capex plan for 2022 of up to $44 billion looks set to enable it to capture high growth in leading and specialty technology nodes and support its percentage sales-growth target of 15-20 per cent CAGR,” Bloomberg Intelligence says of the plan.

“Its net cash position of $12 billion, coupled with consistent operating cash flow, appear likely to support its sizable capacity-expansion plan while maintaining its dividend payout. The company has the capacity to take on more debt without hurting its financial metrics significantly.”



You may also like
Ericsson Seeks To Block Apple Imports Over Copyright Issues
Mac Rumours Say Apple’s M2 Chip Still On Hold
Global Cloud Gaming Goes From Boom To Bigger Boom
OPINION: Microsoft Activison Deal “A Disaster For The Gaming Industry” Pure Garbage
Apple Reclaims Smartphone Crown From Samsung