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TSMC wants to invest $ 44 billion to increase chip production

BingMag.com <b>TSMC</b> <b>wants</b> to <b>invest</b> $ 44 <b>billion</b> to <b>increase</b> <b>chip</b> production

TSMC, the largest mobile chip maker, has announced that it has allocated up to 47% more funding to increase its chip production capacity than last year. Specifically, the company plans to invest between $ 40 billion and $ 44 billion in 2022, up from about $ 30 billion last year.

After the epidemic Corona Demand for chips increased significantly, resulting in a chip shortage crisis. As a result, many chipmakers have budgeted heavily to increase their production capacity. According to estimates, TSMC, Samsung and Intel have made a total of three-fifths of the $ 146 billion investment in 2021.

A senior executive at TSMC has said that demand from advanced gadget companies and manufacturers The cars are so high that the company's factories have to use their full capacity. On the other hand, the demand for chips continues to grow, exacerbating the crisis of shortage of advanced chipsets. TSMC executives have announced that the company's revenue in 2021 will be about 25% higher than in 2020.

BingMag.com <b>TSMC</b> <b>wants</b> to <b>invest</b> $ 44 <b>billion</b> to <b>increase</b> <b>chip</b> production

On the other hand, the company plans to build new product lines to create less advanced chips that are commonly used for products such as cars. Although these chips use older technologies than newer models, experts say that TSMC has a lot to say in this area, so competing with it is not easy.

Although the production of chips related to Cars at TSMC factories have grown by about 60 percent, but in total these chips make up only 4 percent of the company's total revenue. Meanwhile, 44% of the company's revenue comes from mobile phones. TSMC is a Taiwanese company, but recently announced it would set up a $ 12 billion plant in the United States and a $ 7 billion plant in Japan. The company also wants to build a plant in China.

Its competitors are not idle, for example, Samsung is building a $ 17 billion plant in Texas, and Intel plans to build a new plant in Europe. They are valued at a maximum of $ 95 billion.

TSMC was founded in 1987 and over the past 35 years has grown into a multibillion-dollar company that is now one of the pillars of Taiwan's economy. According to published reports, TSMC manufactures chips for more than 460 companies and plays a vital role in the industry. The company plans to increase its distance from competitors by investing several billion dollars.

BingMag.com <b>TSMC</b> <b>wants</b> to <b>invest</b> $ 44 <b>billion</b> to <b>increase</b> <b>chip</b> production

increase its production capacity, and we have to see how the competition between these two chips industry giants will come in the coming years.

According to published reports, Apple is the most important customer of TSMC. It is said that about 26% of the company's revenue comes from Apple chips. In second place is MediaTek, which accounts for about 6 percent of TSMC revenue, and in third place is AMD, with a 4.4 percent share. Apple executives are given priority, and this approach has been challenged by companies such as AMD and MediaTek. But because TSMC chips are so high quality, many companies have no choice but to work with this Taiwanese company.

  • Everything you need to know about Mobile Chipset (SoC)

Source: GSM Arena

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