To meet chip demand, TSMC plans to invest $100 billion over the next three years.

 The Taiwan Semiconductor Manufacturing Company announced on Thursday that it plans to invest $100 billion (roughly Rs. 7,33,620 crores) over the next three years to meet soaring demand as a global chip shortage affects the automotive and other industries.

The news comes after Intel, the world's largest chipmaker, announced plans last week to invest $20 billion (roughly Rs. 1,46,750 crore) in two new plants in Arizona as part of a strategy to increase production at home and in Europe.

Intel's shift comes as countries and businesses in those regions seek to reduce their dependence on Asian semiconductor plants, which are used in an increasing number of goods such as automobiles.

Shortages tend to be affecting a wide variety of electronic devices, including smartphones, gaming consoles, tablets, and desktop computers.

The majority of TMSC's factories are in Taiwan, where they specialise in producing some of the smallest and fastest chips in the world.

Last year, the company announced plans to invest $12 billion (roughly Rs. 88,050 crore) in a state-of-the-art semiconductor foundry in Arizona, which will be its second manufacturing facility in the US.

Taiwan has stated that it will attempt to increase chip production, but a worsening drought may thwart its plans, and the government has warned that it is prepared "for the worst."

Semiconductor manufacturing is a water-intensive process.

*pc-google