Capex spending has been gaining momentum at Taiwan Semiconductor Manufacturing Company (TSMC) recently, and total spending may surpass the company's budget of US$4.8 billion projected for 2010, according to company chairman and CEO Morris Chang.
The chip industry is dependent upon the supply-demand relationship, Chang pointed out. Every industry player expects their production capacity can fully match end-market demand, which scarcely occurs.
TSMC would rather to have excess capacity if it has to choose from the two ends of the spectrum, Chang said. He noted that TSMC always reserves 10-15% in its capacity for unexpected orders. The strategy is to meet any sudden surges in demand, Chang added.
Chang also described the worldwide IC market a market pie generating around US$260 billion annually. Along with its ecosystem partners, TSMC is able to grab a 20% of the pie and therefore has room to extend its presence, according to Chang.
TSMC will participate in each stage of technology evolution in accordance with Moore's Law, continuing its process advancements toward 20nm, 14nm, 10nm and 7nm nodes, said Chang.
Chang made the remarks at TSMC's Technology Forum on June 24.