TSMC Expanding Capacity with $30B in 2021 and $70B in 2022, 2023

Taiwan Semiconductor Manufacturing Co. (TSMC) raised its 2021 capital expenditure target to $30 billion which is up from the $28 billion plan in January.

TSMC CEO C.C. Wei said TSMC expects to invest about $100 billion during the next three years to increase capacity and R&D for leading-edge and specialty technologies.

80% of the budget will go to leading process technologies, including 3nm, 5nm and 7nm, with the remaining 10% earmarked for advanced packaging and mask making, and about 10% for specialty technologies.

By technology, 5nm process technology contributed 14% of total wafer revenue in 1Q21 while 7nm accounted for 35%. Advanced technologies (7nm and below) accounted for 49% of total wafer revenue.

By platform, Smartphone and HPC represented 45% and 35% of net revenue respectively, while IoT, Automotive, DCE, and Others each represented 9%, 4%, 4%, and 3%.

Highlights from the first quarter investor presentation are as follows:

Written by Brian Wang, Nextbigfuture.com