According to Reuters, Taiwan Semiconductor Manufacturing Co (NYSE: TSM), the world’s largest contract chipmaker, is considering plans to develop new factories in the United States and Japan.
What happened was this: The Taiwanese firm, which sells chips to Apple Inc (NASDAQ: AAPL), announced plans to expand production capacity in China and did not rule out the potential of a “second phase” development at its $12 billion Arizona manufacturing site.
Furthermore, the chipmaker, which has customers such as Nvidia Corp (NASDAQ: NVDA) and Qualcomm Inc (NASDAQ: QCOM), is considering establishing a specialist technology wafer fabrication factory, or fab, in Japan.
Also see: TSMC, an Apple supplier, sees an 11% increase in Q2 profit due to increased chip demand.
Why Does It Matter? Taiwan produces the bulk of the world’s most modern semiconductors, which are found in cellphones, laptop computers, and automobiles. According to Reuters, TSMC’s international development is considered as a strategy to reduce reliance on a single location, especially given China’s geographic proximity to Taiwan.
As automakers, smartphone manufacturers, and appliance manufacturers struggle to obtain supplies, demand has risen. In addition, the pandemic has increased demand for work-at-home and learn-at-home gadgets.
Chipmakers are scrambling to keep up with demand and expand production capacity. The Wall Street Journal reported on Thursday that Intel Corp (NASDAQ: INTC) is in talks to buy contract chip maker GlobalFoundries for $30 billion, citing sources.
Price Changes: On Thursday, TSMC shares fell 5.5 percent to $117.53.
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