TSMC to Spend $40 Billion on Chip Shortage

TSMC is investing $44 billion to expand its capacity in 5G and high-performance computing, focusing on advanced technologies like 2nm chips to maintain its leadership over rivals such as Intel and Samsung. This investment is 40% higher than Intel's planned spending. TSMC has also raised its sales growth forecast to an average of 20% annually and expects gross margins to reach 50%. The market has responded positively, with TSMC's ADR rising 5% in the US.

What is the primary focus of TSMC's $44 billion investment?

• Retail expansion

• Renewable energy projects

• 5G and high-performance computing

• Automobile manufacturing

How does TSMC's spending compare to Intel's?

• TSMC is spending 40% less than Intel

• TSMC is spending 40% more than Intel

• TSMC is spending less than Intel

• TSMC is spending the same as Intel

What is TSMC's expected average annual sales growth for the next few years?

• 20%

• 15%

• 25%

• 10%

What gross margin does TSMC aim to achieve over the next few years?

• 50%

• 40%

• 60%

• 30%

How did TSMC's ADR perform in the US market following the spending announcement?

• Remained unchanged

• Decreased by 5%

• Increased by 5%

• Increased by 10%