Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday said it plans to spend another US$14 billion to US$15 billion next year as accelerating deployment of 5G networks boosts demand for its advanced chips.
The company told an annual supply chain forum in Hsinchu that the planned capital expenditure — the same as this year’s level — would mainly be used on new facilities and equipment.
More than half of the spending increase will be earmarked for the mass production of chips using its 5-nanometer technology, TSMC said.
“The acceleration of 5G deployment across the world is leading to much stronger demand for our 7-nanometer and 5-nanometer capacity,” said J. K. Wang (王建光), senior vice president of TSMC’s operations and fab operations. “As a result, we [in October] raised capital spending for 2019 by US$4 billion. We expect next year’s capital spending will be at a similar level.”
5G technology provides low-latency and high-bandwidth connections so that artificial intelligence devices can make the right decisions instantly, Wang said.
All of these devices would generate strong demand for faster and more power-efficient semiconductors made by TSMC, he said.
To satisfy customers’ demand, TSMC plans to start volume production of chips using 5-nanometer technology in the first half of next year at a Tainan fab as scheduled, Wang said.
“We will gain much more business as we ramp up deployment of 5-nanometer [technology] next year,” he said.
TSMC in October said it would be the first wafer foundry capable of providing 5-nanometer chips when the technology becomes commercially available.
It plans to start mass production of chips using 3-nanometer technology in 2022, in line with Moore’s Law that transistor count will double every two years due to shrinking transistor dimensions.
To facilitate the development of next-generation technologies beyond 3 nanometers, TSMC plans to build a new research and development center in Hsinchu County’s Baoshan Township (寶山) next quarter, Wang said.
The center would be able to house 8,000 engineers after construction is completed in 2021, TSMC said.
About 700 suppliers led by Applied Materials Inc and ASML Holding NV attended the forum, which saw TSMC present awards to 14 excellent suppliers, including Taiwan Speciality Chemicals Corp (台灣特品化學), as TSMC gradually adopts locally made equipment and materials.
Taiwan Speciality Chemicals is 30 percent owned by silicon wafer maker Sino-American Silicon Products Inc (SAS, 中美矽晶).
SAS also owns a 50 percent stake in silicon wafer manufacturer GlobalWafers Inc (環球晶圓), which also supplies TSMC.
PRICE POINT: While overall demand has lagged expectations, higher-priced iPhone 14 Pro models appear to attract more attention than entry-level versions, sources said Apple Inc is backing off plans to increase production of its new iPhones this year after an anticipated surge in demand failed to materialize, people familiar with the matter said. The Cupertino, California-based company has told suppliers to pull back from efforts to increase assembly of the iPhone 14 product family by as many as 6 million units in the second half of this year, said the people, asking not to be named as the plans are not public. Instead, the company would aim to produce 90 million handsets for the period, about the same level as in the second half
INEXPENSIVE POWER: Group chairman Gautam Adani said 70% of the investment would go into energy transition, with a focus on green hydrogen India’s Adani Group is to invest more than US$100 billion over the next decade, most of it in the energy transition business, chairman Gautam Adani said yesterday, as the ports-to-energy conglomerate accelerates an already aggressive expansion plan. After founding the group in 1988 as a commodities trading business, the 60-year-old has ventured into multiple sectors, mainly in the infrastructure space and in line with the priorities of the government of Indian Prime Minister Narendra Modi. “As a group, we will invest over US$100 billion of capital in the next decade,” Adani, the world’s second-richest person, told the Forbes Global CEO Conference in
Foxconn Technology Group (富士康科技集團) is to invest US$1.75 million in a joint venture with PT Indika Energy Tbk to explore commercial electric vehicle (EV) and electric battery business opportunities in Indonesia, the Taipei-based company said yesterday. With the investment, Foxconn would hold a 40 percent stake in the joint venture, PT Foxconn Indika Motor, while PT Indika would own 60 percent. The collaboration is an extension of a memorandum of understanding signed in January by Indika Energy, Foxconn, Gogoro Inc (睿能創意) and others aiming to build an electric vehicle supply chain in Southeast Asia’s biggest economy. Gogoro, in which Foxconn owns a 0.76
COLD BENDING: Innolux plans to boost contribution from vehicle displays to 50 percent of overall revenue from 12 percent in the second quarter of this year Innolux Corp (群創) is deepening its partnership with the US-based Corning Inc in the production of cockpit displays through a subsidiary, as it pushes ahead with transformation efforts to fuel growth. Singapore-based CarUX Technology Pte Ltd (群豐駿科技), a vehicle display maker fully owned by Innolux, would incorporate Corning’s cold-bending technology into its large curved vehicle displays, Innolux said in a statement yesterday. CarUX and Corning are expanding their collaboration from automotive glass substrates to glass substrate protection solutions, as they seek to build supply chain ecosystems to generate greater industrial synergies, CarUX said in the statement. With Corning’s ColdForm technology, a glass cover