5G DRIVEN: The additional US$4 billion for next year is to be spent on boosting its 5 and 7-nanometer capacities, as 5G deployment, especially from telecoms, accelerates

Taipei Times
Date: Oct 18, 2019
By: Lisa Wang  /  Staff reporter

Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday raised its capital spending by

up to 40 percent for this year to US$15 billion and said it would maintain the record-high budget next year as faster 5G network deployment and higher smartphone penetration continue to fuel demand for its most advanced technologies.

TSMC has decided to add about US$4 billion in spending, with more than half of the amount to be spent on boosting its 5-nanometer capacity and the remainder for 7-nanometer chip production, said the company, which counts Apple Inc and Huawei Technologies Co’s (華為) chip design arm, Hisilicon Technologies Co (海思半導體), as its top clients.

The company said 5-nanometer technology is more expensive than its previous technology nodes, given its extensive use of high-cost extreme ultraviolet (EUV) tools in mass production, which is to begin in the first half of next year.    [FULL  STORY]