What you need to know
TSMC plans to increase capital spending on developing advanced processor technologies as demand surges.
TSMC is ratcheting up spending by as much as 62% in an effort to meet surging demand for its advanced chips from tech and auto giants.
The world’s largest contract chipmaker plans to increase capital expenditures to US$25 to $28 billion, from $17.2 billion last year. The vast majority of the spending, or around 80%, will be invested in advanced processor technologies: 7nm, 5nm, and 3nm processes, CFO Wendell Huang .
The trend of growth is likely to continue in the first quarter of 2021. CEO C. C. Wei there is a strong demand for high performance computing technologies and the auto market is recovering from the pandemic. The company offers chips for advanced driver-assistance systems and vehicle sensors, he added.
During the pandemic, a is putting pressure on foundries to expand their capacity of chip production. As the most advanced of all, TSMC can expect to assume a more important role in the market. Its high-end chips are used in smartphones, vehicles, and personal computers, among others.
This week, news reports revealed that Intel with TSMC and Samsung to outsource its GPU production in order to compete with Nvidia, though still hoping to make last-minute improvements in production capabilities.
The GPU, known as DG2, will be produced on a new process. Anonymous source said it is made on an of TSMC’s seven nanometer process and more advanced than the GeForce chips that Nvidia ; Samsung produced these chips with its eight nanometer chipmaking process.
Mobileye, Intel’s self-driving subsidiary, that it plans to continue tapping TSMC for the production of its next autonomous vehicle processor, and Qualcomm is to the Taiwanese company again, after having Samsung make its Snapdragon 888 chips last year.
Chaney Ho, executive director at Advantech, Taiwan is welcoming a window of opportunity that will last for two decades. “Taiwan has no reason to be pessimistic,” he added, citing the country’s market share in chip production.
TNL Editor: Bryan Chou, Nicholas Haggerty (@thenewslensintl)
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