TSMC and Peers Invest 16 Trillion Yen in 20 New Factories Across China as US Chips Act Gets Stalled

TSMC and its peers from Taiwan have invested an incredible 16 trillion Yen (US$119 billion) across 20 new factories, massively bolstering China’s semiconductor industry. This is quite interesting as Taiwan has been wary of an invasion by the PRC as both the US and EU pump billions of dollars into their respective chipmaking industries. Furthermore, in a first, TSMC invested $12 billion in Arizona to pump up its advanced process node capacity, making it the first such fab outside of East Asia.

Figures from the Taiwanese Ministry of Economic Affairs indicate that the increase in domestic fixed asset purchases reached NT$483 billion in the first quarter, a record high of 17.8% year-on-year and 17.9% quarter-on-quarter. Asset purchases grew by 354.8 billion Yuan, accounting for 73.4% of the manufacturing industry with an annual growth rate of 23.7%

TSMC is still pouring the bulk of its investments into domestic factories. A sum of 1.15 trillion Yuan was invested in Nanke to expand 3nm and 5nm production. Mass production of the former is set to commence in the second half of the year. Additional 7nm and 28nm plants are planned for construction in Kaohsiung Nanzi Zhongyou Refinery.

TSMC Chairman Liu Deyin has informed shareholders that the foundry is entering a period of sustained growth with this year’s revenue expected to grow by about 30%. He emphasized that TSMC will significantly increase capital investment, most of the funds going into Taiwan. Regardless, Taiwan’s 16 trillion Yen investment amount in China’s semiconductor industry is pretty massive either way you look at it. We’re talking about more than $100 billion as the $52 billion US CHIPS act continues to be prodded and delayed by lawmakers.

Source: CTee


Computer hardware enthusiast, PC gamer, and almost an engineer. Former co-founder of Techquila (2017-2019), a fairly successful tech outlet. Been working on Hardware Times since 2019, an outlet dedicated to computer hardware and its applications.
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