“In order to keep up with demand,” TSMC expects to use the funds to “increase capacity to support the manufacturing and [research and development] of advanced semiconductor technologies,” the company said in a statement sent to CNN Business.
The company has said previously that industry “megatrends,” like 5G and high performance computing, will fuel strong demand for semiconductor technology over the next several years. And it added Thursday that the Covid-19 pandemic “accelerates the digitalization in every aspect.”
Shares of TSMC climbed more than 2% in Taipei on Thursday.
In January, TSMC said it would spend $25 billion to $28 billion this year, compared with $17 billion in 2020. It added that about 80% of that would be used for advanced processing technologies.
The company is entering “another period of higher growth,” said Wendell Huang, TSMC’s vice president and chief financial officer, during a January earnings presentation.
— Clare Duffy contributed to this report.