TSMC, the world’s largest OEM chip maker, confirmed on Thursday that its board of directors had approved a $2.89 billion spending plan to increase chip production capacity and expected to build a 28 nm capacity of 40000 chips a month at its Nanjing plant. The move is seen as a response to the global shortage of chip supply, with the impact of the core shortage crisis on auto manufacturers particularly severe.
In a brief statement, TSMC said its board had approved the spending “with a view to developing mature process capacity.”. However, the company did not give details.
At the recent first quarter financial report meeting, Wei Zhejia, President of TSMC, said: “the demand is still very strong, and the capacity shortage will last for the whole year, and may continue to 2022.”
Due to the continuous shortage of production capacity, the capital expenditure of TSMC this year increased from US $25 billion to US $28 billion at the beginning of the year to US $30 billion. Huang Renzhao, CFO of TSMC, said that about 80% of the $30 billion will be used for advanced processes, including 3nm, 5nm and 7Nm; About 10% is allocated to advanced packaging and light masks; About 10% will be used for special processes.
From the current point of view, the global “lack of core” situation is growing.
On the one hand, the global supply of chips falls short of demand. On the other hand, domestic chip manufacturers have announced price increases one after another. At present, smart microelectronics and Ruixin have announced that they will increase the price of chip products to varying degrees.
Industry insiders said that although companies including TSMC and Intel are trying to improve productivity to alleviate the global chip shortage, the supply shortage situation may continue for about two years.
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