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TSMC is the world’s largest producer of the most advanced processors, including the chips in the latest iPhones, iPads and Macs.
Jacob Borzycki | Norphoto | Getty Images
The Taiwanese semiconductor maker plans to invest nearly NT$90 billion (about $2.87 billion) in a state-of-the-art chip packaging plant in Taiwan, the company told CNBC on Tuesday.
This comes as global chip manufacturers are seeking to take advantage of the artificial intelligence boom. TSMC acknowledged last week that there is strong demand for its AI chips.
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TSMC is the world’s largest producer of the most advanced processors, which include the chips in the latest iPhones, iPads and Macs.
The investment was due to the “rapid growth of the artificial intelligence market” which has “increased demand for TSMC’s cutting-edge packaging,” according to A report from Taiwan’s official Central News Agency.
The facility will be located in Tongluo Science Park in northern Taiwan, TSMC said, adding that the investment is expected to create about 1,500 local jobs.
“For AI, right now, we see very strong demand. For the front end, we don’t have any problem with support,” TSMC CEO CC Wei said during the company’s second-quarter earnings report last week.
However, on the advanced packaging side, Wei said TSMC is seeing “some very limited capacity.”
“We’re ramping up our capacity as quickly as possible and expect those restrictions to be released next year, but in between, we’re still working closely with our customers to support their growth,” he said Thursday.
Packaging is one of the final stages of semiconductor production. It involves placing chips in a protective bag and creating contacts to be placed in an electronic device.
TSMC’s packaging production capacity is “in short supply” as Nvidia and AMD compete for capacity, KCNA reported. Chip giants in the United States nvidia And AMD They are two of TSMC’s biggest customers.
TSMC share performance
Nvidia buys high-bandwidth memory chips compatible with its latest A100 GPUs that train OpenAI’s ChatGPT chatbot.
ChatGPT’s AI-powered language model, and its ability to generate human-like responses to user prompts, has caught on.
“With TSMC launching its advanced packaging expansion plan, the market is optimistic that Wanrun, Hongsu and Xinyun will benefit from the operation of equipment plants,” the report stated.And Referring to companies that make chip-related equipment.
TSMC shares rose 1.97% on Tuesday in Asia.
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