Taiwan Semiconductor Manufacturing (TSMC), a major chip supplier to Apple Inc, said on Thursday it would invest USD100 million over the next three years to increase production capacity at its plants.
The announcement came a few days after Intel Corp announced a USD 20 billion plan to increase its chip making capacity.
In a statement, TSMC said it anticipates strong demand over the next several year, which would be boosted by growth in 5G and high computing capabilities.
The USD100 billion speanding for the next three years would be more than double what the company spent in the previous three years, according to New Street Research analyst Pierre Ferragu.
Apart from TSMC and Intel, Samsung also announced a plan to invest about USD116 billion by 2030 to further expand its semiconductor production.
TSMC’s move come against backdrop that global companies suffered a shortage from semiconductor chips that initially forced auto companies to cut production, but is now hurting makers of smartphones, laptops and even appliances manufacturers.