Taiwan’s TSMC may boost capital expenditures to US$22 billion in 2021

TSMC is expected to announce its 2021 capex budget on earnings call scheduled for Jan. 14

TSMC Tainan office building (Reuters photo)

TSMC Tainan office building (Reuters photo)

TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Co. (TSMC) is reportedly expected to announce a capital expenditure of more than US$20 billion for 2021.

TSMC is expected to bring up its capex budget for 2021 on an earnings call scheduled for Jan. 14, according to CNA. The world’s largest contract chipmaker is anticipated to raise spending to more than US$20 billion and possibly even US$22 billion, up from around US$17 billion in 2020.

The capex increase is expected to be used to expand TSMC’s 5 nanometer process, which entered commercial production in the second quarter of 2020 in addition to building production capacity for its 3 nm node, which is slated to begin mass production in 2022. The Taiwanese company will also use capex funds to continue research and development on its 2 nm process.

According to analysts, another reason for the capex increase is TSMC’s use of Extreme Ultraviolet (EUV) lithography in the manufacturing of its 5nm and 3nm processes, which cost more than US$123 million per machine. Yet another reason behind the increase is the construction of the company’s Arizona plant, which is expected to begin this year.

Updated : 2021-01-18 16:00 GMT+08:00