Taiwan TSMC: Plans to invest $2.9 billion in new plant as demand for AI chips soars

Hong Kong

TSMC, the world’s biggest chipmaker, says it strategies to devote approximately 90 billion New Taiwan bucks ($2.9 billion) to establish an superior chip plant in Taiwan, as it expands output to meet booming demand from customers for synthetic intelligence (AI) merchandise.

Previous week, CEO C.C. Wei informed analysts the firm plans to approximately double its ability for superior packaging in 2024 compared to 2023, in buy to satisfy “strong demand” for AI chips from its buyers, which include things like Nvidia

(NVDA) and AMD.

State-of-the-art packaging in the semiconductor industry consists of utilizing significant-tech methods to combination factors from a variety of wafers in buy to make a extra powerful personal computer chip.


(TSM) stated the new plant is expected to develop 1,500 jobs.

“To satisfy market place needs, TSMC is planning to establish an advanced packaging fab in the Tongluo Science Park,” the corporation informed CNN in a assertion, referring to fabrication crops — the technical expression for semiconductor factories.

The science park is located in Miaoli County, south of the firm’s most important services in Hsinchu, close to Taipei.

TSMC on Thursday claimed a 23% drop in web earnings for the 2nd quarter, compared to the similar period past yr, as a world financial downturn took a toll on all round need — even as consumers clamored for far more of its AI chips.

Chips made by TSMC for prospects like Nvidia are the muscle mass guiding generative AI, a style of artificial intelligence that can make new information, this sort of as text and pictures, in response to person prompts.

Which is the sort of AI underlying ChatGPT, Google

(GOOGL)’s Bard, Dall-E and quite a few of the other new AI systems.

TSMC is considered a countrywide treasure in Taiwan, providing semiconductors to world-wide tech giants such as Apple

(AAPL) and Qualcomm