CapEx Is Expected to Soar 23% in 2022, Surpassing the $180B Mark as Chipmakers Race to Add More Capacity

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Soaring demand and capacity shortages are driving capital spending higher as chipmakers race to add capacity to rectify the constraints on the supply chain. CapEx surged 36% in 2021 and is expected to soar another 23% this year. Getting a huge boost from TSMC's spending plans Taiwan's CapEx increased the most, surging 72% last year and 45% this year. North America and South Korea have also ramped up spending substantially in the last two years, keeping Taiwan in their eyesight. CapEx for each of these regions will approach $50B in 2022 and they will account for 82% of total spending.

Capital Expenditures by Region

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