TSMC outlay keeps economy afloatSTELLAR YEAR: The chipmaker’s investments at home created a domino effect as other industries in its supply chain built new factories to keep up with demandBloombergTaiwan’s economy is set to receive a substantial boost this year from Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) unprecedented spending spree, as the chipmaking giant accelerates plans to build more factories. Taiwan’s largest company revealed plans earlier this month to spend between US$40 billion and US$44 billion this year on new plants to help ease the shortage of semiconductors. That is equivalent to about 5 percent of Taiwan’s US$760 billion economy, based on the government’s GDP estimates for 2021. Winston Chiao, an economist at Taipei-based Taishin Securities, said that TSMC’s spending plans prompt him to upgrade his most recent forecast of 4.2 percent GDP growth this year. The main risk for the economy this year is whether the government adopts strict new measures to stamp out a new COVID-19 outbreak.

Source: Taipei Times January 28, 2022 22:17 UTC