TSMC to increase production against Intel Samsung 17 billion

[Guide] TSMC is now the world's largest manufacturer of chip manufacturers, but facing the challenges of rivals such as Samsung, profitability may be affected. Tencent Science and Technology Ming Xuan October 9 compiled the world's largest chip foundry manufacturer TSMC plans to invest NT $500 billion (about $17 billion) for new manufacturing plants and recruit 7,000 employees to further boost capacity to meet market demand. Starting early next year, the plant will begin producing chips that produce 20 of nano-fabrication processes. As the world's largest and second-largest chipmaker, Intel and Samsung Electronics are now expanding capacity. The two companies have invested $ billions of in new manufacturing plants to get into the lucrative business that TSMC currently dominates. "The development of the mobile industry will continue to grow steadily," said Doh Hyun-woo, analyst at the Seoul Securities Company in the future. Because many companies are envious of TSMC's nearly 50% per cent profit margin, more rivals are expected to enter the chip foundry market. "The analyst points out that TSMC is currently the world's largest chipmaker, because it will continue to dominate the chip foundry market with the largest manufacturing capability and the best foundry technology." But the company's profitability could be affected by the challenges of rivals such as Samsung Electronics. In order to maintain the company's position as the world's largest chipmaker, the firm must invest more money in research and development to boost profitability, said Warren Lau, an analyst at the Thai Stock Exchange and the Maybank Kim Eng Nomura in Hong Kong. Unlike a South Korean or US chip maker, which is independent of its own production of chips, TSMC manufactures chips for chip design companies that do not have manufacturing plants. Samsung Electronics's current main customers include Apple, Qualcomm, and TSMC's main customers include Qualcomm, Texas Instruments and Nvidia. After the chips were made, the chip makers sold the chips to smartphone makers such as Samsung Electronics, Apple, HTC and Huawei. Intel has just dabbled in the chip foundry business, but the company has dug up customer Altera from TSMC and won the latter's 14-nanometer technology OEM list. Intel plans to open Oregon State and Arizona, State's chip-making plants this year, and will manufacture chips for other chip companies. But in July this year, Intel lowered its capital spending plan for the year to 2013, down from its original $13 billion trillion to $11 billion, on the downside of PC demand. However, some media reports said TSMC had received a chip OEM order from Apple, and the company's new 20-nanometer manufacturing plant would be used to manufacture iphones and ipad chips for Apple's foundry. Previously, Apple delivered the chip's OEM order to Samsung Electronics. Samsung Electronics and Apple have not officially broken out in the most sensitive High-tech industries. But with Apple and Samsung Electronics increasingly competitive in the smartphone market, Apple is notIt is no secret to expect Samsung Electronics to provide its hardware. Samsung Electronics, the world's largest maker of memory chips, has spent 4 billion dollars last year renovating its chip manufacturing facility in Austin, USA, to boost the capacity of mobile chips. Samsung Electronics also invested 2.25 trillion won (about $2.1 billion) in South Korea to set up a new chip factory. Steven Pelayo, an analyst at HSBC, points out that TSMC's profit margins will be Bao because it is smarter than rivals that also expand capacity.