SALES INTEREST: ‘We are not going to alter our capital spending for this year, nor are we going to revise our revenue growth outlook,’ TSMC chairman Mark Liu said

Taipei Times
Date: Jun 10, 2020
By: Lisa Wang / Staff reporter, in Hsinchu

Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday left its record capital expenditures plan unchanged for this year as robust client demand for 5-nanometer technology is expected to quickly fill a capacity hole after the US government announced restrictions against supplying Huawei Technologies Co (華為).

The world’s biggest contract chipmaker had said that it planned to spend between US$15 billion and US$16 billion this year primarily to expand capacity for advanced 5-nanometer and 7-nanometer technologies, and develop 3-nanometer technology.

“It looks like we will see a hole in demand for 5-nanometer capacity this year, but I believe this hole will soon be filled,” TSMC chairman Mark Liu (劉德音) told a media briefing after the company’s annual shareholders’ meeting in Hsinchu.

If HiSilicon Technologies Co (海思), a semiconductor arm of Huawei, cancels orders, TSMC’s other clients would make up for that lost capacity, as they have approached the company about placing orders, Liu said in response to shareholder concern that the US’ latest chip supply restrictions on foreign chipmakers might put a damper on TSMC’s revenue growth.
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