Taiwan’s Economy Minister, Wang Mei-hua, has stated that Taiwan Semiconductor Manufacturing Co Ltd (TSMC) has not altered its investment plan for its new chip factory in Kaohsiung, despite a recent report suggesting that the chipmaker is slowing down its expansion plans. Wang confirmed that TSMC’s commitment to making Taiwan its global research and development hub and manufacturing hub remains unchanged. The comments come after Taiwan’s DigiTimes publication reported that TSMC was slowing down its expansion plans in Kaohsiung and other Taiwanese cities. TSMC, which is a major supplier to Apple, declined to comment on the report, citing its quiet period ahead of quarterly earnings due next week.
TSMC broke ground on its Kaohsiung plant last year, which will produce mature 28-nanometre semiconductors. In 2021, the company announced that the Kaohsiung expansion would also include advanced 7-nanometre chips, but later postponed plans to build the advanced chips there. The world’s largest contract chipmaker said in January that it expects softer demand due to a slowing global economy and would decrease its capital expenditure this year to $32-$36bn, from $36.3bn last year. In recent years, TSMC has ramped up investments abroad, announcing new chip factories in the United States and Japan.
TSMC’s shares were down about 1 percent on Wednesday morning, lagging behind the broader market. The company’s decision to decrease its capital expenditure this year may have contributed to the drop in share prices. However, TSMC’s long-term investment strategy remains focused on expanding its global footprint and investing in cutting-edge technologies.
The semiconductor industry is facing challenges due to the ongoing US-China trade war and the COVID-19 pandemic. The trade war has disrupted global supply chains and forced companies to rethink their manufacturing strategies. The pandemic has further exacerbated these challenges, causing a slowdown in demand for semiconductors. However, the long-term outlook for the industry remains positive, with growing demand for semiconductors in emerging technologies such as 5G, artificial intelligence, and the Internet of Things.
TSMC is well-positioned to capitalize on these emerging technologies, with its advanced manufacturing capabilities and strong partnerships with leading technology companies. The company’s decision to expand its global footprint and invest in cutting-edge technologies will enable it to maintain its position as the world’s leading contract chipmaker.
In conclusion, TSMC’s investment plans for its new chip factory in Kaohsiung remain unchanged, according to Taiwan’s Economy Minister. The company’s commitment to making Taiwan its global research and development hub and manufacturing hub remains steadfast. While the semiconductor industry is facing challenges due to the US-China trade war and the COVID-19 pandemic, TSMC’s long-term investment strategy remains focused on expanding its global footprint and investing in cutting-edge technologies. The company’s advanced manufacturing capabilities and strong partnerships with leading technology companies position it well to capitalize on emerging technologies such as 5G, artificial intelligence, and the Internet of Things.