TSMC, the world’s main producer of advanced AI chips, is investing a further $100 billion to expand its Arizona facilities. The company’s Chief Financial Officer, Wendell Huang, stated that TSMC is seeing strong, multi-year demand for its AI chips.

Arizona Expansion

The investment will bring TSMC’s Arizona footprint to 12 fabrication and advanced packaging facilities, plus an R&D centre. The company’s first Arizona fabrication plant is operational and achieving yields as good as its flagship fab in Taiwan.

However, TSMC faces physical constraints, including a shortage of construction workers in Arizona. The company will work closely with the government to solve these issues.

Market Demand

TSMC’s aggressive capital spending and soaring profit margins have made it a barometer of demand in the global semiconductor industry. The company remains confident in its business model, despite competitors seeking to narrow the gap.

TSMC’s Taipei-listed shares fell 7.3% on Friday, despite the company’s record results. The company’s shares remain up nearly 50% this year.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.