TSM Commits $100B In Chip Building Capacity: Bloomberg

TSM Commits $100B In Chip Building Capacity: Bloomberg
  • Taiwan Semiconductor Mfg Co Ltd TSM is targeting a $100 billion outlay over the next three years for the manufacturing and R&D of advanced semiconductor technologies to tap the semiconductor industry boom, Bloomberg reports.
  • TSM previously announced a $28 billion commitment to tackle the global semiconductor crisis, including a $12 billion plant in Arizona.
  • TSM suppliers’ shares, including Screen Holdings CoTokyo Electron Ltd TOELF TOELY, and ASM International NV ASMIY ASMXF, ASML Holding NV jumped on the announcement partly triggered by Micron Technology, Inc’s MU bullish prediction.
  • TSM held cash and cash equivalent of $28 billion as of December 31, 2020, fueling concerns over its capability to pull off the huge outlay amid the cutthroat competition.
  • TSMC acknowledged a supply crisis despite the over 100% utilization rate by its fabs over the last year. The company has multiple factories under construction. It will suspend wafer price reductions for a year from 2022 beginning.
  • Automakers have estimated a revenue hit of over $60 billion due to the global chip crisis.
  • Intel Corp INTC committed a $20 billion investment in two new Arizona factories in March. Samsung Electronics Co Ltd SSNLF is spending over $100 billion over the next ten years for a semiconductor business boost.
  • Price action: TSM shares traded higher by 2.49% at $121.23 in the premarket session on the last check Thursday.

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