TSMC is a leading manufacturer of the world’s most advanced microprocessors, including those found in the latest iPhones, iPads and Macs.
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Taiwan Semiconductor Manufacturing Co The company plans to invest nearly $90 billion in new Taiwan dollars (about $2.87 billion) in an advanced chip packaging plant in Taiwan, the company told CNBC on Tuesday.
It comes as global chipmakers look to capitalize on the artificial intelligence boom. TSMC admitted last week that there is a big demand for AI chips.
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TSMC is a leading manufacturer of the world’s most advanced microprocessors, including the chips found in the latest iPhones, iPads, and Macs.
The investment enabled by the “rapid growth of the AI market” has “driven a surge in demand for TSMC’s cutting-edge packaging,” according to the report. a report from Taiwan’s official Central News Agency.
TSMC said the facility will be located at Tongluo Science Park in northern Taiwan, adding that the investment is expected to create around 1,500 local jobs.
“For AI, right now, we see a huge demand. For the UI part, we don’t have any problems to support,” TSMC CEO CC Wei said during the company’s press conference. second quarter earnings report last week.
In terms of advanced packaging, however, Wei said TSMC is experiencing “some very limited capacity”.
“We are increasing capacity as quickly as possible and we expect that these tightening measures will be lifted next year, but in the meantime, we are working closely with our customers to support their growth,” he said on Thursday.
Packaging is one of the final stages of semiconductor manufacturing. It involves placing the chip in a protective case and making a connection to get the chip into the electronic device.
The central news agency reported that TSMC’s packaging production capacity “is in short supply” as Nvidia and AMD compete for capacity. US-based chip giant Nvidia And AMD are two of TSMC’s biggest customers.
TSMC’s stock performance
Nvidia buys a matching high-bandwidth memory chip with its latest A100 graphics processing unit to train OpenAI’s ChatGPT chatbot.
ChatGPT, an AI-powered language model, has gone viral for its ability to generate human-like responses to user prompts.
“As TSMC rolls out its advanced packaging expansion plan, the market is optimistic that Wanrun, Hongsu and Xinyun will benefit from the operation of equipment factories,” the report said., refers to companies that manufacture chip-related equipment.
TSMC shares were up 1.97% on Tuesday in Asia.
