Apple's chip partner, Taiwan Semiconductor Manufacturing Co (TSMC), stated earlier today that it is doing all it can to increase productivity and alleviate a worldwide chip shortage, but that tight supplies will likely continue into next year. The world’s biggest contract chipmaker said it is expanding capacity and working to keep pricing reasonable.

Chief Executive Officer C. C. Wei told an online earnings briefing: "We have acquired land and equipment, and started the construction of new facilities. We are hiring thousands of employees and expanding our capacity at multiple sites."

TSMC, whose clients include Apple Inc and Qualcomm Inc, had already flagged "multiple years of growth opportunities" as the COVID-19 pandemic fueled demand for advanced chips to power devices such as smartphones and laptops.

Wei said the massive investment plan was driven by "stronger engagement with more customers" on the company’s most advanced 5 nanometer node technology as well as its upcoming 3 nanometer node, which is scheduled to enter trial production later this year.

Wei said TSMC is seeing its clients preparing for “a higher level of inventory” to ensure supply stability due to uncertainties from geopolitics and the pandemic. As a result, he said, the company’s capacity will remain "tight" throughout the year.

Analysts are bullish about the company’s massive expansion plan, expecting global demand for advanced chips to surge as fifth-generation telecommunications (5G) technology and artificial intelligence applications are adopted more widely. For more, read the full Reuters report.

Also see the TSMC press release titled "TSMC Reports First Quarter EPS of NT$5.39"

In Taiwan, the new sites are obsessed with the issue of recent power failures at TSMC Plants. Below is a list of reports from United Daily News (that require translation):

01: TSMC's Nantech plant jumped power yesterday, Shen Rongjin: The government will ensure that the power supply is safe

02: Taiwan Semiconductor Manufacturing Co., Ltd. Plant has a power failure due to cable damage. Ministry of Economic Affairs: It is expected to repair the cable

03: TSMC’s South Technology Plant’s power outage, the Deputy Minister of the Ministry of Economic Affairs: Don’t talk about power failures as power shortages

04: TSMC jumps power! Negligence in site management also highlights energy fragility

05: An accident, seeing the fragility of energy...

06: TSMC Nanke jump power loss of 1 billion... Impact car chips