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 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
18 months ago
Good stuff! 100 Billion investment! That’s wonderful. Good bye Intel Chips.
Score: 8 Votes (Like | Disagree)
ungoogled Avatar
18 months ago
What happens to TSMC if China takes over Taiwan?
Score: 7 Votes (Like | Disagree)
CJM Avatar
18 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
18 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
18 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

tsmc semiconductor chip inspection 678x452

Construction of Apple Supplier Plant in Arizona 'Well Under Way,' Will Manufacture Chips by 2024

Wednesday June 2, 2021 4:15 am PDT by
Apple chip supplier TSMC is moving ahead with plans for a manufacturing plant in Phoenix, Arizona, according to Bloomberg. In November of 2020, Phoenix city officials approved financial incentives and government support for the new plant. The city agreed to provide $200 million in support to build infrastructure including roads and sewers, according to a notice from the city's council....
iphone 13 official roundup header

Apple Ramps Up iPhone 13 Chip Orders, Scales Down Orders for Older iPhones

Monday October 4, 2021 3:57 am PDT by
Apple has managed to ramp up chip orders for its new iPhone 13 lineup by reducing equivalent orders for the older-generation iPhone models that the company still sells, according to a new DigiTimes report. Apple has scaled down its chip orders for older-generation iPhones, while ramping up wafer starts at TSMC for its iPhone 13, the sources said. Apple has also not made any changes to its chip ...
3nm apple silicon feature

2022 iPhones and Macs May Feature 3nm Chips

Tuesday August 10, 2021 8:47 am PDT by
The 2022 iPhones and Macs may feature chips built on the 3nm process, as Apple's leading chip supplier, TSMC, is planning to begin mass production for 3nm chips destined for Apple in the second half of next year, according to a preview of an upcoming report by DigiTimes. The paywalled preview of the full report, which will be published tomorrow, reads: TSMC is on track to move its 3nm...
m1 pro vs max feature

Future Apple Silicon Macs Will Reportedly Use 3nm Chips With Up to 40 Cores

Friday November 5, 2021 6:44 am PDT by
The Information's Wayne Ma today shared alleged details about future Apple silicon chips that will succeed the first-generation M1, M1 Pro, and M1 Max chips, which are manufactured based on Apple chipmaking partner TSMC's 5nm process. The report claims that Apple and TSMC plan to manufacture second-generation Apple silicon chips using an enhanced version of TSMC's 5nm process, and the chips...
tsmc semiconductor chip inspection 678x452

Apple Products Could See 'Noticeable' Price Rises Amid Increased Chip Costs

Monday September 6, 2021 8:37 am PDT by
Apple will need to pay more for the chips in its devices and may pass rising costs on to its customers, according to sources speaking to Nikkei Asia. TSMC, Apple's main chip supplier, is in the process of increasing its prices following wider inflation in the industry caused by the global chip supply shortage. The company's planned price rises are said to be the most substantial chip price...
tsmc semiconductor chip inspection 678x452

Apple Supplier TSMC Readies 2nm Chips for 2024

Wednesday July 28, 2021 9:00 am PDT by
Apple chip supplier TSMC is planning to manufacture chips with a 2nm fabrication process by 2024, according to Nikkei Asia. TSMC plans to build a new factory on 50 acres of land for two-nanometer chips in Hsinchu, Taiwan, scheduled to begin manufacturing operations in 2024. Construction has been cleared to begin in early 2022, with equipment being installed in 2023. For context, if Apple...
3nm apple silicon feature

Intel Eager to Avoid Clashes With Apple As It Looks to Secure TSMC's 3nm Chip Supply

Friday December 3, 2021 2:20 am PST by
Intel is looking to develop a closer relationship with TSMC, Apple's largest and most important chip supplier, to avoid possible clashes with the Cupertino tech giant over TSMC's 3nm chip production, according to DigiTimes. Yesterday, we reported on TSMC beginning pilot production of its 3nm process that will eventually be used in future Apple silicon Macs. Apple currently uses a 5nm process ...
apple park solar

Apple Suppliers Struggling to Meet Environmental Goals

Tuesday January 18, 2022 7:29 am PST by
Apple's strict environmental goals are putting pressure on the company's global supply chains, DigiTimes reports. In a paywalled report, DigiTimes claims that Apple's goal of achieving carbon neutrality by 2030 is putting pressure on its supply chain, with major suppliers such as TSMC scrambling to meet the company's demands. Sources speaking to DigiTimes said that TSMC was making slow...

Popular Stories

airpods pro black background

AirPods Pro 2: Five New Features and Improvements to Expect

Sunday August 14, 2022 3:28 pm PDT by
Apple's second-generation AirPods Pro are finally nearing launch, with a release expected later this year. If you are considering upgrading to the new AirPods Pro once they are released, keep reading for a list of five new features to expect. In addition to all-new features, the second-generation AirPods Pro will likely adopt some features added to the standard AirPods last year. H2 Chip ...
iPhone 14 Dummies 1 Feature

Everything Rumored for Apple's September Event: iPhone 14, Apple Watch Pro and More

Friday August 12, 2022 2:34 pm PDT by
There's just about a month to go until Apple holds its annual September event focusing on new iPhone and Apple Watch models. We thought we'd take a quick look at everything that's rumored for Apple's September event to give MacRumors readers a rundown on what to expect when the first fall event rolls around. iPhone 14 The iPhone 14 can probably be described more as an "iPhone 13S" because...
10th Generation iPad Render

10th-Generation iPad With Major Design Changes Reportedly in Production Ahead of September Launch

Monday August 15, 2022 8:02 pm PDT by
Apple's rumored 10th-generation iPad is currently in production and will feature "major" design changes, according to a report from Taiwanese website DigiTimes. A mockup of the potential 10th-generation iPad design by Renders By Shailesh The report did not provide any specific details about the 10th-generation iPad's new design, but rumors suggest the device will feature a larger 10.5-inch...
ios 16 lock screen feature2

Apple Seeds Sixth Betas of iOS 16 and iPadOS 16 to Developers [Update: Public Beta Available]

Monday August 15, 2022 10:04 am PDT by
Apple today seeded the sixth betas of upcoming iOS 16 and iPadOS 16 updates to developers for testing purposes, with the updates coming a week after Apple released the fifth developer betas. Registered developers can download the iOS and iPadOS 16 profiles from the Apple Developer Center, and once installed, the betas will be available over the air. iOS 16 introduces a revamped Lock...
apple watch se

Apple Watch SE vs. Apple Watch Series 8: New Features to Expect If You've Waited to Upgrade

Monday August 15, 2022 2:44 am PDT by
The Apple Watch SE was announced in September 2020 and has been a popular Apple Watch model for customers looking for their first smartwatch or an affordable Apple Watch. Apple Watch SE customers may be wondering, however, what's in store for them with the upcoming Apple Watch Series 8 and what new features they can expect. Continue reading to find out. Apple Watch SE vs. Apple Watch Series ...
odyssey ark 1

Samsung Launches $3,500 'Odyssey Ark' 55-Inch Curved Gaming Display

Monday August 15, 2022 7:15 am PDT by
Samsung today announced the launch of the Odyssey Ark, which the company says is the world's first 55-inch 4K curved display with a 165Hz refresh rate for improved gaming performance. Samsung first previewed the monitor at CES, but it is now available to order. Subscribe to the MacRumors YouTube channel for more videos. Priced at $3,500, the Samsung Odyssey Ark features mini-LED technology...
top stories 13aug2022

Top Stories: New Battery Percentage Icon in iOS 16, USB-C AirPods Rumor, and More

Saturday August 13, 2022 6:00 am PDT by
This week brought some shocking news for iOS 16 beta testers, with Apple bringing back the iPhone battery percentage to the status bar after a number of years. Other news and rumors this week included word that Apple has started recording portions of its media event planned for next month to introduce the iPhone 14 and Apple Watch Series 8, claims about iPhone 14 Pro pricing and Apple's...