TSMC’s capital expenditure is estimated at $30 billion for 2021

Before TSMC released its first-quarter earnings report, some foreign media reported in the report that the world’s largest chip foundry will increase its capital expenditure expectations for this year.

TSMC will increase its capital expenditure forecast for this year because TSMC is under pressure to increase production capacity. Foreign media predict that TSMC’s capital expenditure this year will increase from the US$25-28 billion estimated in the fourth quarter financial report to US$30-31 billion.

As previously predicted, TSMC has indeed raised its capital expenditure expectations for this year. In the updated financial report, TSMC stated that management currently expects their capital expenditure this year to be around US$30 billion.

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If TSMC’s capital expenditure this year reaches 30 billion U.S. dollars, it means that it will increase significantly year-on-year. TSMC’s previously announced documents show that their capital expenditure in 2020 is equivalent to 18.174 billion U.S. dollars, and the current forecast is 30 billion U.S. dollars this year, an increase of 11.826 billion U.S. dollars, a year-on-year increase of 65%.

It is worth noting that the US$30 billion is only the current year’s capital expenditure forecast for TSMC’s management, and there may be further adjustments in the future. The final capital expenditure may also exceed their expectations.

In 2020, TSMC’s initial estimated capital expenditure was 15-16 billion U.S. dollars, which was revised up to 16-17 billion U.S. dollars in the second quarter’s financial report. The final 18.174 billion U.S. dollars exceeded expectations.