TSMC Will Spend an Extra $10B on Chip Production in 2021

That’s a 1.54x increase if you take $26.5B as a midpoint estimate, and it comes on the heels of the largest demand surge the semiconductor industry has absorbed in decades, if ever.

TSMC’s anticipated revenue growth for 2021 over 2020 is in the mid-teens — very healthy — but the company’s budget increase will likely eat more than half its total revenue.

Some of TSMC’s new capital outlay will be used to break ground on a new fab the company is building in Arizona, but that plant isn’t expected to be online until 2024.

In this past quarter, 5nm shipments accounted for 20 percent of TSMC’s revenue, while 7nm held 29 percent and 16nm grabbed 13 percent.