Apple chipmaking partner TSMC will invest $100 billion over the next three years to expand its chip production capacity to meet the ever-growing demand.
Bloomberg reports that TSMC – which produces A-series chips for the iPhone, iPad, Apple TV, and M1 Macs – had previously announced a planned expenditure of up to $28 billion in 2021 alone. However, the ongoing chip shortage plaguing the global semiconductor industry has forced the firm to increase its planned spending.
The new $100 billion investment will expand production as well as R&D of new semiconductor technologies.
In a letter to customers obtained by Bloomberg News, TSMC Chief Executive Officer C.C. Wei wrote that the company’s fabs have been “running at over 100% utilization over the past 12 months,” but demand still outpaced supply. Thousands of new employees are being hired, and multiple new factories are under construction, he added, and TSMC will suspend wafer price reductions for a year from the start of 2022.
The new investment follows an announcement from earlier this week when it was revealed that Apple has already ordered all of TSMC’s initial production capacity of 4nm chips destined for its next-generation Apple Silicon-powered Macs.