TSMC Invests in New Capacity Despite Forecasts Chip Demand will Ease

upstart writes:

TSMC invests in new capacity despite forecasts chip demand will ease:

Taiwan Semiconductor Manufacturing Company plans to raise its capital expenditure by almost a third this year as the world's largest contract chipmaker defies analyst warnings of softening demand for technology gadgets.

TSMC expects capital expenditure to reach $44 billion this year, a 32 percent increase from the $30 billion spent in 2021 and triple the amount in 2019, the company said on Thursday.

The push underscores the outsized role semiconductors are coming to play in goods far beyond classical electronics products, from cars to factory equipment. It also reflects TSMC's dominance of global chip manufacturing.

The scale of TSMC's spending will also "put a ceiling" on ambitious plans from Samsung, TSMC's closest rival in contract chipmaking, and Intel, which has also entered the foundry business, to challenge the Taiwanese company's leadership, said Dylan Patel of Semianalysis.

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