TSMC approves $6.7 billion expansion

DigiTimes reports TSMC's board of directors has approved a $6.7 billion expansion plan. The Taiwanese foundry will invest in fab facility constructions, advanced node manufacturing capacity expansion and upgrade, as well as specialty proces and advanced packaging capacity expansions.

Total capex this year is expected to come in at $15 billion to $16 billion, slightly higher than the $14.9 billion allocated last year.

TSMC's financial statements for 2019 were also approved at the board meeting, with consolidated revenues totaling about NT$1.07 trillion, net income of NT$345.26 billion, and diluted EPS of NT$13.32.

TSMC has estimated capex for 2020 at US$15-16 billion, up from the US$14.9 billion allocated in 2019. As high as 80% of the 2020 capex will be used for the development of the foundry's advanced process nodes including 7nm, 5nm and 3nm.

TSMC is seeing high demand for its most advanced process nodes and clients are seeing extended lead times as the foundry's capacity is tight.