TSMC says that it is still committed to Taiwan's investment plans, amid slowdown reports

Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chipmaker, has affirmed its commitment to its investment plans in Taiwan's southern city of Kaohsiung, according to the country's Economy Minister Wang Mei-hua. This was in response to a report by DigiTimes that claimed that the chipmaking company was slowing down its expansion plans in Kaohsiung and other Taiwanese cities

"TSMC making Taiwan its global R&D hub and manufacturing hub has not changed," Wang said. "TSMC investing in Taiwan, investing in Kaohsiung, also has not changed."

TSMC started building its Kaohsiung plant last year. The plant will produce 28-nanometer semiconductors. Although the company initially planned to include advanced 7-nanometer chips in the expansion, it postponed these plans.

TSMC has ramped up its investments abroad recently to cater to the semiconductor shortage that happened during the pandemic. The company has announced new chip factories in the United States and Japan. However, it is still committed to its operations in Taiwan. Plans to develop more fabs come amid ever-increasing demand for semiconductors, which are used in a range of products - from smartphones to cars. TSMC's clients include major tech companies like Apple, Nvidia, and Qualcomm.

The chip-making company had previously announced that it expects lower demand due to a slowing global economy and would decrease its capital expenditure this year to $32-$36 billion, from $36.3 billion last year.

Source: Reuters

TSMC says that it is still committed to Taiwan's investment plans, amid slowdown reports