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TSMC may invest over $4.8 billion this year

Posted on Friday, June 25 2010 @ 15:25:37 CEST by

TSMC chairman and CEO Morris Chang revealed his firm's total spending in 2010 may surpass the company's budget of US$4.8 billion:
The chip industry is dependent upon the supply-demand relationship, Chang pointed out. Every industry player expects their production capacity can fully match end-market demand, which scarcely occurs.

TSMC would rather to have excess capacity if it has to choose from the two ends of the spectrum, Chang said. He noted that TSMC always reserves 10-15% in its capacity for unexpected orders. The strategy is to meet any sudden surges in demand, Chang added.

Chang also described the worldwide IC market a market pie generating around US$260 billion annually. Along with its ecosystem partners, TSMC is able to grab a 20% of the pie and therefore has room to extend its presence, according to Chang.



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