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
Apple Sets Feb 19 For iPhone SE 4 Launch
Apple TV+ Comes To Android Users
Why Is Monitoring Your Heart Better With New Powerbeats Pro 2 Buds?
Apple iPhone SE 4 Renders Leaked
Apple Settles iPhone 7 ‘Loop Disease’ Lawsuit With US$350m Settlement

Popular Posts

Worldwide Appliances Jack Up Prices Ahead Of New Outdoor Cooking Range Launch
Latest News
/
/
Seagate To Acquire Intevac In All-Cash Deal
Latest News
/
/
YouTube Shorts with Veo 2
Google Boosts Online AI Video With Veo 2
Latest News
/
/
Leaked Renders Of Samsung Budget Galaxy A36 Revealed
Latest News
/
/
French AV Brands Getting Traction In OZ Advance Paris The Latest
Latest News
/
/

Digital Magazines

Recent Post

Worldwide Appliances Jack Up Prices Ahead Of New Outdoor Cooking Range Launch
Latest News
/
//
Comments are Off
  Six months after Worldwide Appliances took on the Everdure Barbecue brand the business has announced price rises of between...
Read More