Highlights of the day: TSMC spending big on capacity expansions


TSMC has aggressive plans for expanding its fab capacity. In a recent letter sent to clients about canceling discounts for foundry service quotes, TSMC discloses it plans to spend US$100 billion on capacity expansions for the next three years - an annually average that is more than its 2021 capex budget. Chip shortages have been sending vendors in many sectors scrambling for supply - from manufacturing services, components to devices. Notebook ODMs describe the volumes of orders they have been receiving as "ridiculously" big, clearly as a result of overbooking by clients who just keep placing orders, despite possibilities that end-market demand could chill overnight. And chip shortages may not ease until at least first-half 2022, according to Arm Taiwan's president.

TSMC to spend US$100 billion on capacity expansion in 3 years: TSMC has notified customers that price discounts for all orders next year will be canceled and that it will spend US$100 billion on capacity expansion projects in the next three years, according to sources from the IC design sector.

Notebook ODMs express concerns about overbooking: Notebook ODMs have expressed concerns about overbooking by clients who continue to step up their pace of orders, according to industry sources.

Chip shortage may ease as early as 1H22, says Arm Taiwan: Chip shortages may start easing as early as the first half of 2022, according to CK Tseng, president for Arm Taiwan.