TSMC to invest $2.9 billion in advanced chip packaging plant in Taiwan

Taiwan Semiconductor Manufacturing Company plans to put astir $90 cardinal New Taiwan dollars (about $2.87 billion) successful an precocious spot packaging works successful Taiwan, the institution told CNBC connected Tuesday.

It comes arsenic planetary chipmakers question to capitalize connected the artificial quality boom. TSMC acknowledged past week that determination is simply a beardown request for AI chips.

TSMC is the apical shaper of the world's astir precocious processors, which see chips recovered successful the latest iPhones, iPads and Macs.

The concern was sparked by "the accelerated maturation of the AI market" which has "driven a surge successful request for TSMC's precocious packaging," according to a study from Taiwan's official Central News Agency.

The installation volition beryllium located successful Tongluo Science Park successful bluish Taiwan, TSMC said, adding the concern is expected to make astir 1,500 section jobs.

"For AI, close now, we spot a precise beardown demand. For the front-end part, we don't person immoderate occupation to support," said TSMC's CEO C. C. Wei during the firm's second 4th net report past week.

However, connected the precocious packaging side, Wei said TSMC is experiencing "some precise choky capacity."

"We are expanding our capableness arsenic rapidly arsenic imaginable and we expect that these tightenings volition beryllium released adjacent year, but successful between, we're inactive moving intimately with our customers to enactment their growth," helium said Thursday.

Packaging is 1 of the last stages of semiconductor production. It involves putting chips into a protective lawsuit and creating the connections for it to beryllium enactment into an electronics device.

The Central News Agency reported that TSMC's packaging accumulation capableness "is successful abbreviated supply" arsenic Nvidia and AMD vie for capacity. U.S.-based spot giants Nvidia and AMD are 2 of TSMC's largest clients.

TSMC's stock performance

Nvidia buys precocious bandwidth representation chips that acceptable onto its latest A100 graphics processing units that bid OpenAI's chatbot ChatGPT.

ChatGPT, an AI-powered connection model, went viral for its quality to make humanlike responses to users' prompts.

"As TSMC launches its precocious packaging enlargement plan, the marketplace is optimistic that Wanrun, Hongsu and Xinyun volition payment from the cognition of instrumentality factories," the study said, referring to companies that manufacture chip-related equipment.

TSMC shares roseate 1.97% connected Tuesday successful Asia.