TSMC sends scouts to check whether America's datacenters can deliver
Silicon giant budgets up to $64B for expansion while keeping an eye on construction progress and power supplies
TSMC is sending representatives to assess U.S. datacenter construction and power availability as part of its strategy to build billions of dollars' worth of additional chipmaking facilities. The company cautioned about potential challenges for consumer markets during its latest earnings call, acknowledging that AI demand is currently exceeding supply.
Despite this, TSMC CEO C.C. Wei expressed confidence in the company's prospects, stating that semiconductors will remain crucial in the AI revolution. He expects capital expenditures to range between $60 billion and $64 billion this year, with spending projected to exceed the total for 2023-2025 as TSMC expands capacity for its clients.
However, the company is taking a cautious approach, considering various factors such as power shortages, datacenter construction delays, advanced-packaging constraints, and limited supplies of high-bandwidth memory. TSMC is already planning approximately 20 leading-edge manufacturing and advanced-packaging facilities in Taiwan and overseas, with a focus on optimizing capacity across production nodes to maximize wafer output.
Wei emphasized that while potential constraints are taken into account during capacity planning, he remains confident in the robustness of demand, which he believes will continue to outpace supply in the near future.
Written by urgent.news from The Register Science's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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