TSMC expected its 2019 CapEx to be between $10 billion and $11 billion early this year (in line with $10.5 billion in 2018), but increased demand for chips to be made using one of its 7 nm-class nodes (N7, N7P, N7+, N6) and projected demand for 5 nm semiconductors made the foundry change its mind. At its conference call with analysts and investors this week, TSMC said that it had decided to raise its 2019 CapEx by $4 billion to increase production capacities available to its customers. The company now expects its capital expenditure for the full year to be between $14 billion and $15 billion. Furthermore, TSMC upped its CapEx forecast for 2020 and expects it to be similar to the revised CapEx for this year.Demand for TSMC's 5nm and 7nm nodes is much higher than expected, largely due to huge demand from 5G deployment. TSMC expects 2020 CapEx will be in-line with the revised 2019 CapEx.
TSMC ups capital expenditures up to 40 percent on 5nm and 7nm demand boom
Posted on Monday, October 21 2019 @ 11:29 CEST by Thomas De Maesschalck