TSMC is looking to expand into the U.S. and Japan to meet ongoing chip demand

TSMC is looking to expand into the U.S. and Japan to meet ongoing chip demand

Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC) announced plans to build new plants in the United States and Japan on Thursday as demand for a smartphone, laptop and car-powered chips was on the rise in a pandemic.

TSMC, which recorded quarterly sales and forecast higher revenues this quarter, said it will expand production capacity in China and does not rule out the possibility of expanding the “second phase” of the US $ 12 billion factory. Arizona.

The world’s largest contract makers and major suppliers to Apple Inc. have also said they are currently reviewing a plan to create a plant or fab factory to manufacture wafers with a technology specialty in Japan.

TSMC’s Foreign Expansion Plans stem from concerns about Taiwan’s chip manufacturing capacity concentration, which produces most of the world’s most advanced chips, and is geographically close to Rival China’s policy, which does not preclude the use of a democratic island in force. his control.

Taiwan and TSMC have also become dominant in resolving the global chip shortage caused by the pandemic, forcing car manufacturers to cut production and damaging manufacturers of smartphones, laptops and even home appliances.

“We are expanding the global manufacturing footprint to maintain and enhance our competitive advantages and better serve our customers in the new geopolitical environment,” TSMC President Mark Liu said in a call to analysts.

“While our initial manufacturing overseas may not match the costs of Taiwan’s manufacturing operations, we will work with governments to minimize the cost gap,” Liu said.

He did not give details of his plans in America and Japan, adding that the company was working to “fix” prices to reflect rising cost.

Reuters reported in May that TSMC was looking to expand in Arizona beyond what is currently planned.

Liu said TSMC was also planning to increase capacity in China’s Nanjing, due to the “urgent need” of customers, using the age of 28-nanometer semiconductor manufacturing technology.

BMW has warned that a shortage of chip supply is “critical” as it has to endure the output
Read More

It is expected to go into production next year and will eventually reach 40,000 puffs per month by mid-2023, he said.

Relieve the lack of car chips?

Revenues from April to June for TSMC, Asia’s most valuable manufacturing company, rose 28% to a record $ 13.29 billion.

For the quarter ended September, TSMC forecast revenue of $ 14.6 billion to $ 14.9 billion, up from $ 12.1 billion a year earlier than in the same period.

TSMC has said it will reduce car chip shortages for customers from this quarter onwards, but expects semiconductor capacity tightness to be extended until next year.

Qualcomm Inc. the Taiwanese company, which also makes chips for the company, previously announced a $ 100,000 billion expansion plan over the next three years, as fifth-generation (5G) telecommunications technology and Artificial Intelligence applications drive global demand for advanced chips.

“As we move into the third quarter, we expect our business to have strong demand from the industry-leading 5-nanometer and 7-nanometer technology, driven by four growth platforms, namely Smartphone, HPC, IoT and Automotive-related applications.” Wendell Huang Chief Financial Officer said.

Analysts are tight on TSMC’s business in the coming quarters, citing high demand for the company’s most advanced 5-nanometer node technology and the upcoming 3-nanometer node, which is expected to enter production testing this year.

In the second quarter, TSMC posted an 11% gain of $ 134.4 billion ($ 4.81 billion) a year earlier, down from an average estimate of $ 136.5 billion, according to 19 analysts by Refinitiv.

Shares of TSMC, the world’s eleventh-largest listed company, gained about 16 percent this year, giving it a $ 567 billion market, more than double the chipmaker Intel Corp’s share.

Shares of TSMC closed up 0.16% on Thursday, compared to a 1.1% gain in the benchmark index.


Be Updated with all the
Latest Entertainment News
Latest Lifestyle News
Latest Music News
Latest Movie News
Latest TV Shows Entertainment News
Latest Tech News

Join the discussion