CAPACITY EXPANSION:
TSMC plans to spend US$40 billion as it prepares to adopt a 3-nanometer process while developing a more sophisticated 2-nanometer process

Taiwan took the top spot in global semiconductor equipment spending in the second quarter of this year, up from third place in the previous quarter, as the country’s manufacturers are keen to invest in expansion, the association said on Wednesday. global SEMI semiconductor trade.

Taiwanese companies spent $6.68 billion to purchase semiconductor equipment from April to June, up 37 percent from the previous quarter, according to data from SEMI.

Second-quarter spending also rose 32% from a year earlier, the data showed.

Photo: Ann Wang, Reuters

Although the second quarter is traditionally a slow season in the global semiconductor industry, many Taiwanese companies have invested funds in expanding production and upgrading technology to stay ahead of their peers. industry, analysts said.

Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, has been one of the biggest investors in equipment to develop advanced processes, they said.

TSMC expects to spend around US$40 billion in capital expenditures this year, as it is set to start using a 3-nanometer process this year, while also developing a more sophisticated 2-nanometer process.

While demand for TSMC’s 7-nanometer and 5-nanometer processes remains strong for emerging technologies such as high-performance computing devices, 5G applications and automotive electronics, TSMC needed more capacity, analysts said.

Full capacity utilization is expected to continue through the end of the year, TSMC said.

China spent $6.56 billion to purchase semiconductor equipment in the second quarter, down 13% from the previous quarter, and also down 20% from a year earlier, to take the lead. second place, dropping from first place in the first quarter, according to SEMI data.

Analysts said the fall was largely the result of a U.S. government-imposed ban on selling certain types of semiconductor equipment to China, while that country’s “zero COVID” policy has also hurt. on demand.

South Korea ranked third after purchasing $5.78 billion in semiconductor equipment, up 12% from the previous quarter but down 13% from a year earlier. , falling from second place in the first quarter, according to the data.

In the second quarter, global spending on semiconductor equipment totaled $26.43 billion, up 7% from the previous quarter and 6% from a year earlier, SEMI said.

As foundry operators such as TSMC increase their production capacity, spending on semiconductor equipment is expected to increase this year, said SEMI Taiwan President Terry Tsao (曹世綸), who is also the global marketing director. of the group.

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