TSMC Boosts Investment to Over $64B Amid AI Demand

Taiwan Semiconductor Manufacturing Co (TSMC) announced it is raising its 2024 capital expenditure to more than US$64 billion and will invest an additional US$100 billion in the US. The world’s largest contract chipmaker cited rapidly growing demand for artificial intelligence applications as the driver behind the increased spending. This investment will fund at least four new advanced wafer fabrication facilities and chip packaging plants in Arizona, bringing TSMC’s total US investment to US$265 billion.

TSMC is also continuing expansion in Taiwan, planning 13 advanced wafer fabs over the next few years, alongside three new 3nm fabs in Taiwan, Arizona, and Japan. The company expects revenue growth of over 40% this year, up from a previous forecast of 35%, fueled by generative AI’s demand for leading-edge chips.

TSMC chairman C.C. Wei emphasized the complexity and long lead times required for advanced chip technology, suggesting competitors like Samsung and Intel face significant hurdles. The company anticipates volume production of its A14 technology in 2028, with even more advanced nodes following in 2029.