Taiwan's TSMC to pour $100B into chipmaking

It was announced on Thursday, Taiwan's Semiconductor Manufacturing Company, the world's largest contract chipmaker, that it expects to pour $100 billion into advanced chips over the next three years to keep up with rising demand.

The company said in a statement, the investment is a massive increase over the $25 billion to $28 billion that TSMC (TSM) planned to spend to make advanced chips this year. "In order to keep up with demand," TSMC expects to use the funds to "increase capacity to support the manufacturing and  of advanced semiconductor technologies."

The company has said previously that industry "megatrends," like 5G and high performance computing, will fuel strong demand for semiconductor technology over the next several years. And it added Thursday that the Covid-19 pandemic "accelerates the digitalization in every aspect."

On Thursday, Shares of TSMC climbed more than 2% in Taipei.

Global chipmaking giants are racing to expand chip fabrication capacity to meet strong demand as a worldwide chip shortage has hampered industries ranging from autos to video games.