tsmc boosts investment to meet rising demand

2025-01-23 tsmc

Hsinchu, Taiwan, Thursday, 23 January 2025.
Taiwan Semiconductor Manufacturing Company (TSMC) is planning to increase investments in advanced wafer technology. This decision is driven by the growing market demand and aims to strengthen TSMC’s production capabilities. By ramping up its technological investments, the company seeks to maintain its leadership position in the industry. This strategic move also has the potential to significantly impact TSMC’s stock performance, reflecting confidence in its future growth prospects. As the semiconductor industry faces various challenges and opportunities, TSMC’s proactive step highlights its commitment to innovation and market dominance.

Market leadership strengthens as samsung cuts back

While TSMC expands its investments, main competitor Samsung Electronics is significantly reducing its foundry division budget. Samsung has announced its equipment investment budget will drop to 5 trillion won in 2025, half of its 2024 budget of 10 trillion won [2][3][4]. In contrast, TSMC’s capital expenditure for 2024 stands at 9,560 billion New Taiwan dollars [2], approximately four times Samsung’s 2024 investment level.

Advanced manufacturing expansion

TSMC has received a crucial boost with $1.5 billion in U.S. government subsidies in Q4 2024 [6]. The company is constructing three semiconductor plants in Arizona with a total investment of $65 billion [6]. The first facility will begin mass production in early 2025 using 4nm technology, while a second plant using 3nm technology is scheduled for 2028 production [6].

Recovery from recent setbacks

TSMC demonstrates its operational resilience as its advanced process facility in Southern Taiwan Science Park resumes full operations on January 23, 2025 [7]. The facility, which produces 3nm and 5nm chips, experienced minimal damage during recent earthquakes due to its high seismic resistance standards [7]. The company’s stock has shown positive momentum, trading at NT$1,135 with a 1.34% increase [1].

Bronnen

TSMC investment wafer technology