TSMC plans record $28 billion capital expenditures this year

TSMC is steaming ahead with massive investments as the Taiwanese foundry expects $28 billion in capital spending this year. It's over half more than last year's $17 billion, which was already a record for the company. The figure includes expenditures for a new plant in Arizona and represents over half of TSMC's projected revenue for 2021.

Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) came through with an announcement of record capital spending: Up to $28B this year, a sum meant to extend its leadership as well as build the Arizona plant it intends to take care of certain American customers.

The figure blows away its record last year of $17B in spending, and reflects not only confidence in the company's growth but also an opportunistic move amid a surge in demand for semiconductors. TSMC is typically conservative about capital spending.

Thanks to massive demand for its chip manufacturing services, TSMC experienced a 50 percent increase in full-year profit in 2020.

Via: Seeking Alpha