TSMC expects capital expenditure of US $32-36 billion this year, 70% of which will be spent on advanced process technology.

January 16 news, according to foreign media reports, wafer foundry and closed testing service provider TSMC in the latest financial results, their 2023 capital expenditure is expected to be 32 billion-36 billion US dollars.

In a conference call with analysts after the earnings release, TSMC CFO Huang Renzhao revealed that they spent $36.3 billion in 2022 to meet structural needs and support customer growth.

Expenditure in 2022 is $36.3 billion, which means that TSMC's capital expenditure in 2023 will be lower than in 2022 if it is not revised up and eventually does not exceed the forecast of $32-36 billion.

With regard to this year's planned capital expenditure, Huang Renzhao also disclosed in a conference call with financial analysts that about 70 per cent will be allocated to advanced process processes, about 20 per cent to special processes, and the remaining 10 per cent to advanced packaging.

In some years, TSMC adjusted its capital expenditure expectations over time. In 2021, for example, they initially expected $25 billion to $28 billion, but raised it to $30 billion in their first-quarter earnings report.

Whether TSMC will adjust its capital expenditure forecast this year depends on market conditions. If the market demand is strong, they may raise it, but it will not be known until they disclose it in the financial report.