Getting Ready for the Tech Party: TSMC Ramps Up Production

Intermediate | June 1, 2025

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TSMC Ramps Up Production for the Upcoming Tech Boom

What Is TSMC and Why Are They Important?

Have you heard about TSMC? They are a really important company from Taiwan that makes computer chips. You can find their chips in lots of things, like your smartphone and the powerful computers used for Artificial Intelligence, or AI. Well, they are making big plans for next year, 2025, because they think there will be a “tech boom”! This means people will want to buy a lot more technology. To get ready, TSMC is increasing how many chips they can make.

Why TSMC Believes a Tech Boom Is Coming

So, why are they so sure about this? A major reason is the huge demand for AI. Everyone is talking about AI, and it needs super fast and powerful chips to work. TSMC is the main maker of these advanced chips. They expect the money they make from AI products to double in 2025! This strong demand is a big “green light” for them to produce more.

Global Expansion as TSMC Ramps Up Production

Huge Investments and New Factories

To make a lot more chips, you need more factories and special equipment. TSMC is planning to invest a huge amount of money, somewhere between $38 billion and $42 billion, in 2025. This is a lot more than they spent in 2024! They are planning to build nine new facilities. Eight of these will be places that make the chips (called fabs, short for fabrication plants), and one will be for putting chips together in advanced ways.

International Growth and Chip Innovation

These new factories won’t just be in Taiwan. TSMC is building them in the United States, Japan, and Germany too. This helps them make chips closer to their customers in different parts of the world. They are also working on making their most advanced chips even better, like the 3-nanometer chips they make now and the even smaller 2-nanometer chips that will start production later in 2025. Making chips smaller means they can be more powerful and use less energy.

Challenges Ahead for TSMC

Even though things look good for TSMC because of AI, there are still some challenges. For example, sometimes there are worries about trade rules and tariffs, especially with the U.S. But TSMC says their customers haven’t changed their orders because of this yet. They are still expecting strong growth and are going “full steam ahead” with their expansion plans to meet the needs of the upcoming tech boom.

Vocabulary

Ramp up (verb): To increase the speed, volume, or intensity of an activity.
- Example: “The company needs to ramp up production before the holidays.”
Boom (noun): A period of rapid economic growth.
- Example: “The internet caused a tech boom in the 1990s.”
Advanced (adjective): Modern and well-developed.
- Example: “Scientists are working on advanced new medicines.”
Demand (noun): The need or desire that people have for particular goods and services.
- Example: “There is high demand for electric cars right now.”
Artificial Intelligence (AI) (noun): The development of computer systems able to perform tasks that normally require human intelligence.
- Example: “AI is being used in many new apps.”
Invest (verb): To put money into something to make a profit.
- Example: “They decided to invest in a new business.”
Facility (noun): A place or building used for a particular activity.
- Example: “The company opened a new manufacturing facility.”
Capacity (noun): The maximum amount that something can produce or contain.
- Example: “We need to increase our production capacity.”
Tariff (noun): A tax on goods coming into or going out of a country.
- Example: “New tariffs could make imported cars more expensive.”
Outlook (noun): The probable future situation.
- Example: “The economic outlook for next year is positive.”

Discussion Questions (About the Article)

What is TSMC and why is it an important company?
What is a “tech boom” and why does TSMC expect one in 2025?
How much money is TSMC planning to invest in 2025 and what will they use it for?
Besides Taiwan, where else is TSMC building new facilities?
What is one challenge TSMC is facing despite its positive outlook?

Discussion Questions (About the Topic)

How important are computer chips in your daily life?
What kind of new technology are you most excited about?
Do you think the demand for AI technology will continue to grow rapidly?
What are some advantages of companies building factories in different countries?
How might global events or trade policies affect technology companies like TSMC?

Related Idiom

Full steam ahead

Meaning: To proceed with maximum speed or energy.
Example: The project is going full steam ahead to meet the deadline.

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This article was inspired by: Reuters, May 26, 2025