TSMC plans to spend $6.7 billion to increase its production capacity

This spending will be focused on increasing TSMC’s production capabilities, focusing on the company’s advanced process nodes (7nm and newer). Moving forward, TSMC sees higher demand for its advanced manufacturing capabilities, especially within the smartphone and high-performance computing markets. 

5G is expected to increase smartphone demand in the coming years, which when combined with AMD’s market share gains places a lot of manufacturing demand on TSMC. TSMC doesn’t want to leave any money on the table with these companies, which means that it needs to continue investing to keep up with the growth of today’s tech giants. 

TSMC’s 7nm manufacturing capabilities are also expected to be used to create both Microsoft’s Xbox Series X and Sony’s PlayStation 5 games consoles. These systems are due to put a lot of strain on TSMC’s manufacturing capabilities, especially as we approach their holiday 2020 launch windows.