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TSMC to spend $100 billion in order to bolster capacity amid global chip shortages
By Neil Soutter on April 1st, 2021 at 03:27pm - original article from game-debate

We are currently in the midst of global chip shortage that is now apparently at a crisis point, which has resulted in a major shortage of chips to many of the top hardware manufacturers across the globe. Not only does this mean we saw less hardware available on shelves and online, but it has also raised the prices of graphics cards for a second time in less than a year.

But amidst all that, it looks like TSMC is planning to invest a whopping $100 billion over the next 3 years in order to increase total capacity, which will lead to more chips available to manufacturers.

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

Currently it’s unclear how TSMC will finance that though, as last year the company had $28 billion on their balance sheet in December. Then again, the semiconductor manufacturer has some of the biggest names as their clients, including Apple (their biggest client), Nvidia, AMD, and more.

There is a caveat though: it won’t be an instantaneous change and will likely be a slow process. The plan is expected to take place over the next 3 years after all, but with any luck we’ll start seeing better results in terms of chip supply in the next few months. At that point, the slow process will have begun, but at least we’ll be seeing more supply of graphics cards and CPUs soon after.

What do you think? Will this help the chip shortage soon? How long until we see the effects? And will this just result in an overabundance of chips in the future? Let us know your thoughts!

TSMC to spend $100 billion in order to bolster capacity amid global chip shortages