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posted by janrinok on Monday January 17 2022, @12:57AM   Printer-friendly
from the hoping-for-no-dips-in-chips dept.

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.

[...] TSMC has built a massive fabrication plant, or fab, in southern Taiwan for advanced 3 nanometer chips, a technology level at which production is scheduled to begin later this year. It is also building a new fab for production at 5 nanometers, the most advanced technology level currently in production, in the US.

The company said the expansion was needed because demand for its chips would continue to increase by double-digit margins for years to come, even though some analysts have predicted a slowdown after a growth spurt in the past two years.

"We observe end-market demand may slow down in terms of units, but silicon content is increasing," said CC Wei, TSMC's chief executive. "So even if there's a slowdown, we believe it could be less volatile for TSMC. So we expect our capacity to remain very tight throughout 2022."

See also Tom's Hardware and a video at Bloomberg.


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  • (Score: 0) by Anonymous Coward on Monday January 17 2022, @06:39PM (5 children)

    by Anonymous Coward on Monday January 17 2022, @06:39PM (#1213438)

    > sovereign nations such as Japan and Texas.

    Texas a sovereign nations, eh? I hope that was a joke!

  • (Score: 3, Interesting) by DannyB on Monday January 17 2022, @07:01PM (4 children)

    by DannyB (5839) Subscriber Badge on Monday January 17 2022, @07:01PM (#1213443) Journal

    It was. However at least one Texas politician is running on a platform of ceding from the union. I'm not sure, but I think ceding from the union is maybe a permanent thing in Texas. Someone with more information might be able to clarify.

    --
    People today are educated enough to repeat what they are taught but not to question what they are taught.
    • (Score: 0) by Anonymous Coward on Monday January 17 2022, @08:21PM

      by Anonymous Coward on Monday January 17 2022, @08:21PM (#1213461)

      I have already seceded from the union. No politicians required. Yee haw!!

    • (Score: 1, Informative) by Anonymous Coward on Monday January 17 2022, @11:12PM

      by Anonymous Coward on Monday January 17 2022, @11:12PM (#1213490)

      > I'm not sure, but I think ceding from the union is maybe a permanent thing in Texas.

      OK, joke taken. I've been in Texas a number of times, don't recall hearing that, but it does seem possible.

      However, note that George Washington wrote about this potential problem with the Union:
          https://www.mountvernon.org/library/digitalhistory/digital-encyclopedia/article/george-washington-s-farewell-address/ [mountvernon.org]
      (Original address is available, link is down a page, a blue box on the right side. Warning, the language is flowery or perhaps "formal" for lack of a better term.)

    • (Score: 2) by Freeman on Tuesday January 18 2022, @08:26PM (1 child)

      by Freeman (732) on Tuesday January 18 2022, @08:26PM (#1213658) Journal

      Theoretically seceding from the union is something that Texas could have done. Doing so now, would be rather dumb.

      #1 Texas Residents would need to want to do so. While there are a few out spoken people, it's not that big a thing.

      #2 The United States of America would do a lot to keep Texas in the Union. Very well could be the cause of Civil War #2.

      #3 The legality is pretty iffy. While the Texas Constitution may allow for it. The United States Constitution does not.

      --
      Joshua 1:9 "Be strong and of a good courage; be not afraid, neither be thou dismayed: for the Lord thy God is with thee"
      • (Score: 2) by DannyB on Wednesday January 19 2022, @02:40PM

        by DannyB (5839) Subscriber Badge on Wednesday January 19 2022, @02:40PM (#1213843) Journal

        Doing so now, would be rather dumb.

        This item belongs on the list of reasons why they WOULD do it, not on the list of reasons why they wouldn't.

        --
        People today are educated enough to repeat what they are taught but not to question what they are taught.