TSMC to Spend $100 Billion Over Three Years to Grow Capacity - Bloomberg
ENVISIONED OUTLAY | WHEN/WHAT | |
---|
TSMC | $100 billion | Over three years to expand capacity |
Intel | $20 billion | To build two new fabs in Arizona |
Samsung | $116 billion | Over a decade to expand foundry business |
And Intel is going to catch up to TSMC?
This is a bit apples to oranges in comparing the numbers listed in this table. A more accurate representation is the following:
TSMC is spending $100B in capex over next three years, split something like $25B/$35B/$40B, all pure play foundry. Quick Edit: It looks like its not clear whether TSMC $100B is capex or capex plus R&D. Assuming some portion to R&D, the low end of TSMC capex would then be about $29B-$30B per year over the next three years.
Intel is spending $20B on two fabs for just its new foundry business, IFS. They are spending $20B in 2021 capex for its existing fab footprint. Future Intel capex will probably be high teens billions per year with the $20B in IFS spread over 3 years. I'd guess base-line capex will be $20B/$25B/$25B. This is all Logic and Foundry since Intel's NAND business will be at SK Hynix
Samsung's $116B foundry spending is not all capex as 55% is R&D expenses and 45% is capex for actual fabs. So Samsung foundry capex is $52B but that number is the guide for total aggregate spending from 2020-2030. So yearly capex from Samsung for Foundry is something closer to $5.2B per year over the next few years.
If anything, I'd say the read-through is that INTC has put forth a sizable spending gauntlet vs TSMC and TSMC is saying they will answer in kind. If I were Samsung, I'd be thinking about how much more spending needs to be done to remain competitive at leading edge foundry.