The demand for semiconductor chips is increasing rapidly across industries. Semiconductor companies worldwide are making significant investments in ramping up production to meet the growing demand. The world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing (TSM), plans to invest $100 billion over three years to ramp up production.
“We see capital expenditure nearly doubling over the 2021-2025 5 year period vs. 2016-2020 period,” said Peter Hanbury, a semiconductor analyst at research firm Bain. Moreover, the U.S. House of Representatives passed the America Competes Act last week, allocating $52 billion to boost the semiconductor industry. In addition, semiconductor sales are expected to grow 9% this year to cross $600 billion for the first time.
