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TSMC hikes capex to record $28bn as chip race heats up

Taiwanese titan logs highest revenue in 2020 and says 5G will fuel further growth

TSMC will spend $25 billion to $28 billion on plants and equipment this year, around 80% of which will go to the company’s three most advanced chip production technologies. (Photo by Akira Kodaka)

TAIPEI -- Taiwan Semiconductor Manufacturing Co. said on Thursday that it will raise its capital spending to record levels as the world's biggest contract chipmaker looks to maintain its lead in semiconductor production technology.

The company, fresh off a record financial performance in 2020, is budgeting between $25 billion to $28 billion for capital spending this year, up from $17.2 billion in 2020, TSMC CFO Wendell Huang said Thursday. Around 80% of that amount will be allocated to the company's three most advanced chip production technologies, including one that is still under development, while 10% will go toward expanding its 3D chip-stacking and packaging tech.

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