Taiwan Semiconductor Mfg. Co. Ltd.TSM 1.88%, a foundry that supplies chips to the likes ofApple IncAAPL 1.17%, is taking steps to alleviate thechip shortage which has come to plague companies cutting across sectors.
What Happened:At a special meeting of TSMC's board held Thursday, the board approved a $2.89 billion capital spending plan. The company said the investment will be made toward installing mature technology capacity.
The company approved in January a CapEx plan of $25 billion to $28 billion to develop advanced chips and building plant capacity.
Earlier this month, TSMC said it would allocate $100 billion over the next three years to increase production capacity.
Why It's Important: Theautomobile, as well as consumer electronics industries, are reeling from chip shortage, which has forced production shutdowns and delayed launches.
Chipmakers have stepped up to resolve this crisis.Intel CorporationINTC 1.77%announced a $20 billion investment plan to build new fabs in Arizona, as it committed to a hybrid manufacturing model.
The capacity expansion will likely help the Taiwanese foundry to take advantage of the opportunity presented by the chip crunch.