TSMC sees no sign of capex slowdown as demand stays strong - digitimes

TSMC's chairman C.C. Wei indicated no capital expenditure slowdown despite strong demand for advanced chips, ongoing US expansion, and growing interest in robotics and autonomous vehicles. This reflec... Read original →

TSMC’s unwavering capex stance signals a strategic pivot from capacity race to ecosystem entrenchment. Sustained investment in 3nm and below will force rapid iteration across the upstream stack—from EDA tools to EUV photoresists—while accelerating adoption of chiplet-based packaging. Its U.S. expansion isn’t merely geopolitical hedging; it accepts 20–30% higher operating costs for supply chain insurance amid tightening export controls. With Samsung Foundry distracted by memory volatility and Intel IFS still grappling with yield issues, TSMC leverages capital discipline as a moat. Over the next 18 months, AI training ASICs and autonomous driving SoCs will create dual demand surges, tightening supply in ‘mature-advanced’ nodes (5nm+). This may compel customers to lock in capacity via multi-year deals, fundamentally shifting bargaining power toward foundry leaders.