Taiwan Semiconductor Manufacturing Co. (TSMC), the Hsinchu-based world’s biggest contract chipmaker, said at Semicon Taiwan that its expected quarterly spending on chipmaking tools is now about 1.9x what it projected in December, as it expands production to meet AI demand.

Deputy Co-COO Cliff Hou said TSMC is trying to build and equip about 20 factories in Taiwan and overseas.

This compares with its usual four or five new buildings at a time, while the company faces a shortage of experienced construction workers in Taiwan.

CEO CC Wei said the company would keep working well into next year to narrow the gap between supply and demand as customers including Nvidia and Advanced Micro Devices increase orders.

Skilled labor constraints have already delayed the opening of TSMC’s Arizona chip plant until 2025, highlighting schedule risks as the company speeds up construction.

🔗 Source: Bloomberg

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