Chip manufacturing giant TSMC to invest $100 billion over three years to grow its capacity

Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chipmaker that counts the world's bitcoin hardware designers among its clientele, plans to invest $100 billion over the next three years to grow its capacity.

"TSMC expects to invest USD$100b over the next three years to increase capacity to support the manufacturing and R&D of advanced semiconductor technologies," the company told Bloomberg on Thursday. "TSMC is working closely with our customers to address their needs in a sustainable manner."

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The global economy is experiencing a chip shortage because of production disruptions triggered by the COVID-19 pandemic, impacting numerous industries including bitcoin mining, as The Block reported this week.

Bitcoin miner manufacturers rely on companies like TSMC, Semiconductor Manufacturing International Corporation, and Samsung Foundry to construct their application-specific integrated circuit (ASIC) chips for bitcoin mining hardware.

Other industries affected include smartphones, personal computers, and electronic vehicles. In response, several chipmakers have announced plans to invest billions of dollars to increase their capacities. Intel, for instance, plans to directly compete with TSMC with a $20 billion investment via two new factories in Arizona. Samsung Electronics is also spending over $100 billion over the next decade to expand its semiconductor business.

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Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.