The world’s largest contract chipmaker aims to ramp up U.S. expansion amid “long-term structural demand” even as construction lags and Washington maintains controls.
Taiwan Semiconductor Manufacturing Co. (TSMC) is planning to ramp up its investment in the United States to $265 billion, more than a 50% increase, amid expectations that demand for artificial intelligence (AI) chips will continue at a healthy pace, The Economic Times reported. According to TSMC Chief Financial Officer Wendell Huang, following its second quarter earnings, customer demand for AI chips is “strong” and the long term demand looks like “long term structural demand,” The Economic Times noted.
Huang said, the company’s first Arizona chip fabrication plant is “operational with yields at levels equivalent to our flagship facility in Taiwan. The second fab is preparing to install equipment while a third fab is being built… And now prep has started for the fourth fab and first advanced packaging facility.”
The U.S. Expansion will be plagued by issues related to availability of workers, and the inadequacy of infrastructure at the planned site, Huang conceded. The firm will “continue to work with the authorities” on these matters and push forward its plans.
“We continue to see customers’ strong demand – multi-year structural demand,” Huang said.
The company also expressed confidence in its long-term business outlook despite escalating trade tensions between the U.S. And China. Huang stressed that the company is “continuously reviewing our export control systems to ensure compliance.”
TSMC shares fell 7.3 percent in Taiwan trading following the results, however, they are still up roughly 50 percent year-to-date. “Our competitors are good, but we are even better,” Huang concluded.
