Gamers crawling to purchase the new Nvidia RTX 3090 or even the new PS5 restock have suffered an extremely scarce year. The top global chip manufacturer, however, might be making moves that could bring the shortage to an end!
Shortage on available chips
TSMC has promised that it will spend a whopping $100 billion over the next three years to increase the total capacity of its production facilities. The Wall Street Journal also noted that it will be a new investment record for not just the company but for the entire industry.
According to PhoneArena, TSMC actually takes the chip designs from Intel, Apple, AMD, MediaTek, and other companies. Due to the massive demand for 5G chips and chips for Nvidia RTX 30 series and the new PS5 restock, manufacturers have struggled to keep up with the supply.
TSMC injects $100 billion
According to CEO C.C. Wei, despite utilizing the company's fabs at over 100%, TSMC still can't keep up with the strong client demands. The company is now even hiring thousands of new employees and expanding the overall production capacity.
Pierre Ferragu, a New Street Research analyst, notes that the whopping $100 billion, which TSMC plans to spend over three years, is now double what they had to spend the last three years. The company also explained the main reason for doubling its budget because TSMC is now working very closely with customers to address their needs more sustainably.
During the start of 2021, it was said that the capital expenditures are expected to range around $25 billion to $28 billion mostly as the company would get ready to ship out new 3nm chips some time next year. Some time last year, TSMC launched chips that were produced with a 5nm process node starting with the 2020 Apple A14 Bionic.
The smaller the whole process node, the larger the number of transistors that can fit into a fixed square mm, which would make the components much more powerful and even energy-efficient. Building certain new lines to be able to produce 3nm chips is a huge expensive task.
Samsung chip manufacturer
Back in November, TSMC was able to complete the plant structure for its very own 3nm fab at the whole Southern Taiwan Science Park or STSP. The competition is also spending a lot of cash. Intel has just recently announced that it would spend a whopping $20 billion in order to build two different chip factories in the US back in 2024.
Intel, which were once bragging about having a three-year lead compared to rivals, is now finding themselves behind foundries just like TSMC and even Samsung when it comes to the process node of their very own cutting-end chips. Samsung, which is now the second-largest contract foundry in the world, is planning to shell out $116 billion by 2030 to be able to diversity its whole production chips.
This article is owned by Tech Times
Written by Urian Buenconsejo