TAIPEI— Taiwan Semiconductor Manufacturing Co. , a major chip supplier to Apple Inc., said it would invest $100 billion over the next three years to increase production capacity as demand surges.
The investment builds on a record annual capital-expenditure budget for the world’s largest contract chip maker, at a time when chips are in short supply around the world. In a statement, the company said it expects strong demand over the next several years, a trend driven by growth in 5G and high computing capabilities and accelerated by the Covid-19 pandemic.
“TSMC is working closely with our customers to address their needs in a sustainable manner,” the company said Thursday.
In January, TSMC said it would spend $25 billion to $28 billion on developing advanced chips and building plant capacity in 2021.
Other chip makers are also pouring money into increasing capacity. Intel Corp. recently said it would spend $20 billion on two new chip factories in the U.S., starting in 2024. The semiconductor giant had lagged behind competitors such as TSMC and Samsung Electronics Co. in market share and technology capabilities, leading to the ouster of Bob Swan as chief executive.