Taiwan Semiconductor Manufacturing Company plans to raise its capital expenditure by almost a third this year as the world’s largest contract chipmaker defies analyst warnings of softening demand for technology gadgets.
TSMC expects capital expenditure to reach $44bn this year, a 32 per cent increase from the $30bn spent in 2021 and triple the amount in 2019, the company said on Thursday.
The push underscores the outsized role semiconductors are coming to play in goods far beyond classical electronics products, from cars to factory equipment. It also reflects TSMC’s dominance of global chip manufacturing.
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