Internet

TSMC to Invest $2.9 Billion in New AI-Backed Chip Plant in Taiwan

Driven by a surge in demand for artificial intelligence, Taiwanese chip maker TSMC plans to invest nearly $2.87 billion (roughly Rs. 23,500 crore) in an advanced packaging facility in northern Taiwan, the company said on Tuesday.

“To meet market needs, TSMC is planning to establish an advanced packaging fab in the Tongluo Science Park,” the company said in a statement.

CEO C.C. Wei said last week that TSMC is unable to fulfil customer demand driven by the AI boom and plans to roughly double its capacity for advanced packaging – which involves placing multiple chips into a single device, lowering the added cost of more powerful computing.

For advanced packaging, especially TSMC’s chip on wafer on the substrate (CoWoS), capacity is “very tight,” Wei said after the company reported a 23 percent fall in second-quarter profit.

“We are increasing our capacity as quickly as possible. We expect this tightening will be released next year, probably towards the end of next year.”

The world’s largest contract chipmaker said TSMC’s position as the leading manufacturer of AI chips – including for chip designers Nvidia and Advanced Micro Devices – has not offset broader end market weakness as the global economy recovers more slowly than it had expected.

The Tongluo Science Park administration has officially approved TSMC’s application to lease land, the company said, adding the new plant in the northern county of Miaoli would create about 1500 jobs.

Even as the leading Apple supplier ramps up its expansion abroad, it plans to keep its most advanced chip technology in Taiwan, a global powerhouse in manufacturing semiconductors that power everything from smartphones to electric vehicles.

© Thomson Reuters 2023


Will the Nothing Phone 2 serve as the successor to the Phone 1, or will the two co-exist? We discuss the company’s recently launched handset and more on the latest episode of Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

Affiliate links may be automatically generated – see our ethics statement for details.

Articles You May Like

Biggest risks of using gen AI like ChatGPT, Google Gemini, Microsoft Copilot, Apple Intelligence in your private life
Chinese APT41 Upgrades Malware Arsenal with DodgeBox and MoonWalk
Remnant 2, Crisis Core – Final Fantasy VII – Reunion and More Join PS Plus Game Catalog in July
Apple Tipped to Drop Blue Titanium Finish in Favour of a ‘Rose’ Colourway on iPhone 16 Pro
Tesla shares close down 8% after report of robotaxi unveiling delay