TSMC earmarks record $44 billion for chip manufacturing expansion in 2022

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Taiwan Semiconductor Manufacturing Company (TSMC), which makes chips for Apple and other companies, plans to increase its manufacturing capacity by as much as $44 billion in the next four years, according to a report. In its latest earnings release, the Taiwanese firm said it expects capital spending to be between $40 and $44 billion in 2022, up from a previous record of $30 billion in 2021.

It is not an unexpected increase, given the company's previously announced plan to spend $100 billion on expanding its manufacturing capacity. The Financial Times notes that the record sum suggests demand for chips won't slow down anytime soon.

TSMC believes that a slowdown will be made up by more product categories like cars and factory equipment. The company's CEO said that the company observed end-market demand may slow down, but Silicon content is increasing.

Up from $30 billion in 2020.

Regardless of whether the global chip shortage continues, TSMC expects demand to remain high. The company expects the chip manufacturing industry to grow 20 percent this year, but that TSMC will grow at a higher rate. Its revenue increased by 25 percent last year.

Even though Intel is starting to compete with the company's contract chip manufacturing business, TSMC expects this growth to continue. Tim Culpan, a reporter for Bloomberg, said that Intel is unlikely to be a direct challenger to TSMC anytime soon.

The California company has to rely on TSMC to produce its best chips because Intel trails 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 He is confident that he can catch up. There is no way the firm will be able to expand capacity and economies of scale to be financially competitive. Intel will need to sacrifice margins to get the volume he wants to build.

Huge demand for chips has helped solidify TSMC as one of the largest and most important companies in the world. With its ambitious expansion plans, it doesn't look like this will change.