TSMC’s board of directors has just approved $37.1 billion in new capital spending, with $29.62 billion that will be used “to meet long-term capacity plans… and TSMC’s technology development roadmap”.
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In this new injection of spending, there will be $7.5 billion for TSMC’s new plant in Arizona, US, noting that in June 2024, TSMC approved $17.36 billion for fab construction and $5 billion for TSMC global. Ctee reports that we don’t know exactly what this money will be funding, but the money is going towards long-term capacity plans and TSMC is pretty much booked deep into 2024, and even into 2025 with some companies.
TSMC isn’t just expanding its operations in Taiwan, its home country, but also its production capacity and leading semiconductor technology worldwide, especially in the US with multiple fabs under construction (of which Intel is trying to poach senior engineers for its own Intel Foundry business, away from TSMC’s new operations in Arizona).
Capital budgets have increased at TSMC over $14.7 billion in the last two months alone, with TSMC stating in a response to long-term production capacity is based on market demands.
For TSMC, this means AI processors, HBM memory, technology development blueprints, the content includes the construction and upgrading of various processes, advanced packaging, mature and/or special process production capacity and factory construction and factory facilities engineering.