Top chipmakers spend big to end silicon shortage

The world's top chipmakers are spending big to tackle a global shortage of semiconductors.

Just days ago U.S. giant Intel said it would invest $20 billion to expand its advanced manufacturing capacity.

Now Thursday (April 1) brings news of an even bigger plan.

Taiwan's TSMC says it will invest $100 billion over three years to boost output at its plants.

The firm is the world largest contract manufacturer of chips, supplying brands like Apple.

Its new investment come as firms around the world reel from a lack of silicon.

Strong demand for gadgets from consumers stuck at home is among the factors.

The shortage has forced carmakers to cut output, and is now biting makers of phones, laptops and even home appliances like fridges.

TSMC says this is a good time to invest.

Besides the current shortage, it says factors like the shift to 5G phone networks should ensure that demand stays strong.

TSMC shares rose around 2.5 percent on Thursday following the news.