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
11 months 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
11 months ago
Good stuff! 100 Billion investment! That’s wonderful. Good bye Intel Chips.
Score: 8 Votes (Like | Disagree)
ungoogled Avatar
11 months ago
What happens to TSMC if China takes over Taiwan?
Score: 7 Votes (Like | Disagree)
CJM Avatar
11 months 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: 6 Votes (Like | Disagree)
ArPe Avatar
11 months 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
11 months 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)

Related Stories

m2 feature

Apple Silicon M2 Chip Coming to Wave of New Macs

Monday May 24, 2021 2:27 am PDT by
Apple's more powerful "M2" chip is set to come to a wave of new Macs, bringing significant performance and efficiency improvements to a range of new models, according to recent reports. Bloomberg's Mark Gurman previously said that Apple is working on higher-end Apple silicon chips that are expected to "significantly outpace" the performance of the latest Macs that still contain Intel chips,...
tsmc semiconductor chip inspection 678x452

Intel and AMD Ask for Government Incentives While Apple Supplier TSMC Expands to Meet Unprecedented Demand

Thursday February 11, 2021 6:18 am PST by
A group of U.S. chip companies, including Intel, Qualcomm, Micron, and AMD, have today sent a letter to President Joe Biden to request "funding for incentives," while Apple supplier TSMC is undertaking a considerable expansion as chip demand outstrips supply (via Reuters). The letter to the President asked for "substantial funding for incentives for semiconductor manufacturing" to be...
Apple car wheel icon feature purple

Apple Car Speculated to Leverage Eye-Tracking Technology With a 'C1' Chip Based on A12 Processor

Friday January 15, 2021 8:36 am PST by
The long-rumored Apple Car could use a "C1" chip based on the A12 Bionic processor and boast in-cabin AI capabilities such as eye-tracking, according to a highly-speculative report by analyst Colin Barnden for EETimes. The report outlines the methodology and licensed technologies believed to be behind an Apple automotive-grade processor, which it tentatively calls the "C1" chip. Since...
m2 feature

Apple's 'M2' Next-Gen Mac Chip Enters Mass Production, Expected to Debut in Redesigned MacBooks Later This Year

Tuesday April 27, 2021 1:38 am PDT by
Apple's custom next-generation Mac processor entered mass production this month, claims a new report today from Nikkei Asia. Tentatively dubbed the "M2" after Apple's M1 chip, the processors take at least three months to produce and could begin shipping as early as July in time for incorporation in Apple's next line of MacBooks, according to the paper's sources. The next generation of Mac...
a14 bionic chip video

TSMC to Begin Production of 3nm Chips This Year

Friday January 15, 2021 3:19 am PST by
Apple chipmaking partner TSMC is "on track" to begin risk production of a 3-nanometer fabrication process in 2021, followed by volume production in the second half of next year, according to the foundry (via DigiTimes). "Our N3 technology development is on track with good progress," said TSMC CEO CC Wei at the company's earnings conference call on January 14. "We are seeing a much higher level ...
m2 feature purple

Apple Preparing Faster M2 Chip for Next-Gen MacBook Pro

Tuesday June 1, 2021 3:04 am PDT by
Apple is readying its more powerful, next-generation "M2" chip for redesigned MacBook Pro models, according to recent reports. According to Nikkei Asia, Apple's next-generation custom silicon chip for the Mac, tentatively dubbed the "M2" chip, entered production in April. The processors take at least three months to produce and could begin shipping to Apple as early as July, in time for...
iPhone 13 Notch Feature

Apple Supplier TSMC Reportedly Begins Production of A15 Bionic Chip for iPhone 13

Tuesday May 25, 2021 11:36 pm PDT by
Following a report indicating that production would begin ahead of schedule, longtime Apple supplier TSMC has now officially kicked off production of Apple's upcoming A15 chip for the iPhone 13 lineup, expected later on in the second half of this year, according to a new paywalled report from DigiTimes. The A14 Bionic chip, which first got announced in the iPad Air and then made its way to...
applesupplierreport

Apple Publishes 2021 Supplier Progress Report

Monday May 31, 2021 3:27 am PDT by
Apple has published its annual supplier responsibility report, which outlines the progress it and its suppliers are making towards improving the rights of workers, furthering environmental protection goals, the response to the global health crisis, and more. The report contains detailed information ranging from how Apple addresses reports of violations within its supply chain to how the...

Popular Stories

iPhone 14 Mock pill and hole thumb

ProMotion Now Expected to Remain Exclusive to iPhone 14 Pro Models, Not Expand to Entire Lineup

Sunday January 16, 2022 8:56 am PST by
Continuing the tradition set with the iPhone 13 Pro, only the highest-end iPhone 14 models will feature Apple's ProMotion display technology, according to a respected display analyst. Ross Young, who on multiple occasions has detailed accurate information about Apple's future products, said in a tweet that ProMotion will not be expanded to the entire iPhone 14 lineup and will remain...
AirPods Pro Gen 3 Mock Feature Red

AirPods Pro 2 Could Start a New Accessory Ecosystem

Friday January 14, 2022 2:34 am PST by
Apple's second-generation AirPods Pro could arrive alongside a new series of accessories, recent leaked images suggest. Alleged leaked photos of the next-generation AirPods Pro obtained by MacRumors showed a charging case with a metal loop on the side for attaching a strap. Apple has not used this design for any of its other AirPod models and it is unclear why it would be added in this...
Unlikely Products 2022 Feature

Six Rumored Apple Products You're Unlikely to See This Year

Saturday January 15, 2022 2:06 pm PST by
Much has been said about what consumers could see from Apple in 2022, but the company is also working on a handful of rumored products that aren't expected to be unveiled for at least another 12 months, and in some cases a lot longer. Of course, that's assuming they get released at all. Apple works on many potential products some of which ultimately never see the light of day. With that in...
safari icon blue banner

Safari Bug Allows Websites to Track Your Recent Browsing Activity in Real Time

Sunday January 16, 2022 3:37 pm PST by
A bug in WebKit's implementation of a JavaScript API called IndexedDB can reveal your recent browsing history and even your identity, according to a blog post shared on Friday by browser fingerprinting service FingerprintJS. In a nutshell, the bug allows any website that uses IndexedDB to access the names of IndexedDB databases generated by other websites during a user's browsing session....
ipad air 4 video

New iPad Air Rumored to Launch This Spring With A15 Chip, 5G, Center Stage Camera, and More

Saturday January 15, 2022 8:05 pm PST by
Apple is planning to release a fifth-generation iPad Air with similar features as the sixth-generation iPad mini, including an A15 Bionic chip, 12-megapixel Ultra Wide front camera with Center Stage support, 5G for cellular models, and Quad-LED True Tone flash, according to Japanese blog Mac Otakara. Citing reliables sources in China, the report claims that the new iPad Air could be...
netflix2

Netflix Again Raises Prices for All Plans, 4K Streaming Now $20 Per Month

Friday January 14, 2022 12:46 pm PST by
Netflix today updated the prices for its streaming plans, and all of its offerings are now more expensive. The Basic plan is now priced at $9.99 per month, the Standard plan is priced at $15.49 per month, and the Premium plan is priced at $19.99 per month. The Basic plan is $1 more expensive, up from $8.99 per month. This plan allows users to watch on just one screen at a time, and it limits ...
top stories 20220115

Top Stories: iPhone 14 Pro Rumors, iCloud Private Relay Controversy, iOS 15.2.1 Released, and More

Saturday January 15, 2022 6:00 am PST by
Hole-punch? Pill? Hole-punch and pill? Rumors about what the front camera system on the iPhone 14 Pro will look like are evolving rapidly, and it now appears we might be getting a novel but potentially controversial design later this year. Other major stories this week included some confusion and controversy about iCloud Private Relay being disabled for some T-Mobile customers, increasing...
iPhone 14 Mock pill and hole 16x9 120hz

Analyst: All iPhone 14 Models to Feature 120Hz Displays, 6GB of RAM, and More

Friday January 14, 2022 7:02 am PST by
Apple is rumored to announce four new iPhone 14 models in September, and ahead of time, analyst Jeff Pu has outlined his expectations for the devices. In a research note with Haitong International Securities, obtained by MacRumors, Pu claimed that all iPhone 14 models will feature ProMotion displays, compared to only Pro models currently. ProMotion enables a variable refresh rate up to 120Hz ...