Benzinga | Apr 1, 2021 08:13AM EDT

TSM Commits $100B In Chip Building Capacity: Bloomberg

* Taiwan Semiconductor Mfg Co Ltd (NYSE: TSM) is targeting a $100 billion outlay over the next three years for the manufacturing and R&D of advanced semiconductor technologies to tap the semiconductor industry boom, Bloomberg reports.

* TSM previously announced a $28 billion commitment to tackle the global semiconductor crisis, including a $12 billion plant in Arizona.

* TSM suppliers' shares, including Screen Holdings Co, Tokyo Electron Ltd (OTC: TOELF) (OTC: TOELY), and ASM International NV (OTC: ASMIY) (OTC: ASMXF), ASML Holding NV jumped on the announcement partly triggered by Micron Technology, Inc's (NASDAQ: MU) bullish prediction.

* TSM held cash and cash equivalent of $28 billion as of December 31, 2020, fueling concerns over its capability to pull off the huge outlay amid the cutthroat competition.

* TSMC acknowledged a supply crisis despite the over 100% utilization rate by its fabs over the last year. The company has multiple factories under construction. It will suspend wafer price reductions for a year from 2022 beginning.

* Automakers have estimated a revenue hit of over $60 billion due to the global chip crisis.

* Intel Corp (NASDAQ: INTC) committed a $20 billion investment in two new Arizona factories in March. Samsung Electronics Co Ltd (OTC: SSNLF) is spending over $100 billion over the next ten years for a semiconductor business boost.

* Price action: TSM shares traded higher by 2.49% at $121.23 in the premarket session on the last check Thursday.