Chipmaker TSMC will invest another $100 billion to expand U.S. production lines
Announced plans to invest an additional US$100 billion to expand U.S. chip production capacity. This company is NVIDIA, Leading global companies that supply chips have also raised their revenue forecasts and annual capital expenditure plans. After the implementation of this new investment in the Arizona factory, TSMC's total committed investment in U.S. chip manufacturing projects will reach US$265 billion. The investment announcement comes as TSMC announced its second-quarter financial report on Thursday. Benefiting from the explosion of dividends in the artificial intelligence industry, net profit surged 77% year-on-year. Consensus forecast data from S&P's Visible Alpha showed that the company's net profit reached NT$706.6 billion (equivalent to US$22 billion), significantly exceeding analysts' expectations of NT$630 billion; total revenue increased 36% year-on-year to NT$1.27 trillion. TSMC predicts that the company’s third-quarter revenue will increase by 37% year-on-year, ranging from US$44.6 billion to US$45.8 billion. At the same time, the capital expenditure forecast for this year was raised to US$60 billion to US$64 billion from the original US$52 billion to US$56 billion. "We have strong confidence in the long-term megatrend of artificial intelligence that will last for many years," said TSMC CEO Wei Zhejia. The strong demand for artificial intelligence data centers has caused an overall supply shortage of chips, and at the same time raised the chip procurement costs for other customers such as consumer electronics manufacturers. When analysts asked how long the current AI chip shortage might last, Wei Zhejia said that the relevant strong demand is expected to continue from 2029 to 2030. "Our capacity expansion plans will not encounter any capacity bottlenecks," he added. Wei Zhejia said that this new US investment will be used to build four more production plants at TSMC. It includes factories that can produce the most advanced process chips of 2 nanometers and below, as well as advanced packaging supporting production lines - advanced packaging is the core process for manufacturing high-end complex chips. TSMC said that overseas expansion combined with the increase in high-end advanced chip production capacity will dilute the company's profit margin in the second half of the year. TSMC did not give a clear timetable for the implementation of this new investment in the United States. Wei Zhejia said the construction progress "will depend on market conditions and customer demand." He added: "We will speed up the construction progress as much as possible. There is a huge gap between supply and demand, and we are doing our best to narrow this gap."