On January 13, TSMC (TSMC), the world's largest semiconductor foundry, announced that its equipment investment in 2022 will reach a maximum of US$44 billion. It increased by more than 40% compared with 2021, reaching a record high and four times that of 2017 five years ago. TSMC

On January 13, TSMC (TSMC), the world's largest semiconductor foundry, announced that its equipment investment in 2022 will reach a maximum of US$44 billion. It increased by more than 40% compared with 2021, reaching a record high and four times that of 2017 five years ago. TSMC will start construction of a new "2nm" factory in Taiwan within this year that is two generations ahead of the current cutting-edge products, with the aim of further improving its competitive advantage.

TSMC will further expand equipment investment in 2022

TSMC held an online financial report conference from October to December 2021 on January 13, announcing that both sales and net profit hit quarterly historical records. Sales increased by 21% year-on-year to NT$438.1 billion, and net profit increased by 16% year-on-year to NT$166.2 billion.

TSMC Chief Executive Officer (CEO) Wei Zhejia, who attended the meeting, said that sales in fiscal year 2022 are expected to increase by 25 to 29%. Annual sales will also maintain a growth rate of 15 to 20% in the next few years.

Wei Zhejia pointed out that high growth is mainly supported by 5G, high-performance computers, artificial intelligence (AI) and automobile-related products. In terms of customers, demand for Apple mobile phones, which accounted for more than 20% of sales, drove growth.

In addition, American Advanced Micro Devices (AMD), which has an advantage in the field of personal computers and data centers, and MediaTek, which provides semiconductor design to mainland Chinese mobile phone manufacturers, will continue to place a large number of orders. Cutting-edge products produced for U.S.-based Intel will also support performance.

In order to further capture demand, TSMC will establish a mass production system for cutting-edge products through large investments. First of all, the new factory in Tainan City will be the world's first mass production of "3 nanometer chips" starting in the second half of 2022.

Apple’s new mobile phone, which will be launched in the fall of 2022, has decided to use 3-nanometer chips, and TSMC will speed up preparations for mass production. 3nm chips are one generation ahead of the current cutting-edge 5nm semiconductors. South Korea's biggest competitor, Samsung Electronics, will begin mass production of 3-nanometer chips by the end of the year. TSMC took the lead in starting mass production, aiming to continue to secure major customers such as Apple and further maintain its competitive advantage.

TSMC will build a new ultra-cutting-edge "2nm chip" factory in Hsinchu, where its headquarters is located, one generation ahead of 3nm this year. In terms of cutting-edge chips, we also plan to concentrate investment in Taiwan in the future. The construction of a new 2-nanometer chip factory is also being considered in Taichung City, and the construction of a cutting-edge product factory will be started in Kaohsiung City within the year.

In Kumamoto Prefecture, Japan, TSMC will also increase equipment investment and build a new factory for mature products "22-28 nanometer chips". From cutting-edge products to mature products, TSMC will ensure competitiveness in all aspects. The 2021 (as of December 2021) sales released by

on the same day increased by 18.5% year-on-year to NT$1.5874 trillion, and net profit increased by 15.2% year-on-year to NT$596.5 billion. Full-year sales and net profit hit record highs.

Nihon Keizai Shimbun (Chinese version: Nikkei Chinese website) Yu Nakamura reported in Taipei

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