TSMC Approves $6.7 Billion Fab Expansion For 7nm, 5nm Chip Production

TSMC’s Board of Directors approved the company budget for another semiconductor fab expansion. With a budget totaling 6.74 billion US dollars. It includes,

1) Fab construction, and installation of fab facility systems.

2) Installation and upgrade of advanced technology capacity

3) Installation of specialty technology capacity

4) Installation of advanced packaging capacity

5) Second-quarter 2020 R&D capital investments and sustaining capital expenditures.

TSMC’s financial statements for 2019 were also approved at the board meeting, with consolidated revenues totaling about NT$1.07 trillion, net income of NT$345.26 billion, and diluted EPS of NT$13.32.

The huge amount of capital is mainly used to expand advanced technology production lines. In addition to 7nm full load, there will be 6nm and 5nm processes this year. Apple’s A14 and Huawei’s Hisilicon Kirin 1020 chips will all use 5nm processes.

TSMC’s second-generation 7nm process and 5nm process will use a large number of EUV lithography machines. Such equipment can only be produced by ASML, and each unit costs more than 120 million US dollars.


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