Expansion Plan by World’s Largest Contract Chipmaker Won’t Ease Global Shortage: Experts

TAIPEI - Plans by the world's largest contract chipmaker for a record $100 billion capacity expansion will just mildly dent a growing worldwide shortage of semiconductors for gear such as high-speed notebook computers, 5G smartphones and newer vehicles, tech experts believe.

Taiwan Semiconductor Manufacturing Co. said in an April 1 legal notice to the Taipei stock exchange that it would use the money over three years on “leading technology” for manufacturing and R&D to “answer demands from the market.” The notice specifically cites demand for chips used in 5G-enabled and high-performance devices. That amount would set a dollar-value record for the company, which is better known as TSMC, said Brady Wang, an analyst in Taipei with the market intelligence firm Counterpoint Research. TSMC’s investment will ease “anxiety” among clients worried about semiconductor supply-chain instability caused in part by Sino-U.S. trade tension, said Kent Chong, managing director of professional services firm PwC Legal in Taipei. Its clients include multiple American hardware developers including Apple.