Apple Chip Supplier TSMC to Expand Production Capacity With $100 Billion Investment Over Next Three Years

Long-time Apple supplier TSMC, which produces A-series chips for the iPhone, iPad, and Apple silicon chips for the Mac, will invest $100 billion over the next three years to significantly expand its production capacity to meet ever-increasing demand, Bloomberg reports.

apple chip lab
TSMC previously announced a planned expenditure of up to $28 billion in 2021 alone; however, an ongoing chip shortage is plaguing the global semiconductor industry, forcing the supplier to increase its planned investments. In a statement, TSMC says the new $100 billion investment will expand support for production and R&D of new semiconductor technologies.

TSMC expects to invest USD$100b over the next three years to increase capacity to support the manufacturing and R&D of advanced semiconductor technologies. TSMC is working closely with our customers to address their needs in a sustainable manner.

In a letter to customers, such as Qualcomm, Nivida, and Apple, TSMC CEO C.C. Wei revealed that his company has been running at 100% capacity over the last year and that thousands of new employees have been hired in an effort to keep up with demand.

In a letter to customers obtained by Bloomberg News, TSMC Chief Executive Officer C.C. Wei wrote that the company's fabs have been "running at over 100% utilization over the past 12 months," but demand still outpaced supply. Thousands of new employees are being hired, and multiple new factories are under construction, he added, and TSMC will suspend wafer price reductions for a year from the start of 2022.

The new investment comes the same week that Apple has reportedly booked all of TSMC's production capacity for 4nm process chips, expected to be used in "new generation" Mac computers.

Tag: TSMC

Top Rated Comments

djcerla Avatar
18 weeks ago
Intel’s board of directors, reached at their Honolulu resort, remained largely unmoved by the news.

“We like our strategy. We like it a lot” said Chip Ballmer, Head of Development for Intel’s new 12 nm process.
Score: 18 Votes (Like | Disagree)
TheYayAreaLiving Avatar
18 weeks ago
Good stuff! 100 Billion investment! That’s wonderful. Good bye Intel Chips.
Score: 8 Votes (Like | Disagree)
ungoogled Avatar
18 weeks ago
What happens to TSMC if China takes over Taiwan?
Score: 7 Votes (Like | Disagree)
ArPe Avatar
18 weeks ago
Just don’t give anymore chips to miners. They’re all performing the same damn calculations in a stupid sudoku competition and eating up all our resources. Don’t give them even one more gram of silicon and black the miners at the architectural level not just some firmware or software patch that they can hack.
Score: 6 Votes (Like | Disagree)
InGen Avatar
18 weeks ago
The battle for the silicon chip has begun. Considering every digital platform & system is largely dependant and reflective of the Silicon it's running on, expect there to be big 'turf wars' over the systems and platforms we use as companies compete to have their chips used. And while Apple may not share the levels of quantity and proliferation that it's competitors enjoy in this industry, Apple's integration between the software and hardware is unparalleled, and I see Apple winning the long game when it matures and broadens the applications of it's operating systems.
Score: 5 Votes (Like | Disagree)
CJM Avatar
18 weeks ago
Thing is... only one company based in the Netherlands, ASML, is making the Extreme Ultraviolet Lithography machines that are required to fab these 5nm chips and they are totally booked up with orders. Unless they increase production as well, this is going to be a difficult road.
Score: 5 Votes (Like | Disagree)

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