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TSMC's capital expenditure is expected to reach $12.5 billion in 2019

TSMC expects its 2019 capital expenditures to exceed the high end of the previous range of $10 billion to $11 billion, as the pure-wafer foundry is working to expand its 7-nanometer process capability and develop newer 5-nanometer nodes for the new Customer design is ready The industry sources said that from the demand for strong chip demand in the 5G era, TSMC's capital expenditure this year may reach $12.5 billion.

Samsung, another major player in the foundry industry, may be behind TSMC, but the South Korean giant has made progress in the Chinese market by winning orders from its smartphone maker Vivo due to the US trade ban on Huawei. But the 5G chip market has become very sensitive, and prices have already faced significant downward pressure.

TSMC's capital expenditures may reach $12.5 billion: According to industry sources, TSMC expects its capital expenditures this year to reach about $12.5 billion to meet strong chip demand in the 5G era.

Samsung is said to receive 5G AP from Vivo, baseband chip orders: Samsung Electronics has adopted a two-pronged approach to promote the sale of its products, including China's 5G application processor (AP), 5G baseband chips and mid-range smartphones.

Overall, the price of 5G chipset solutions may drop significantly in the second half of 2019: Chipset vendors, including Qualcomm, MediaTek and Unisoc Technologies, are under pressure to cut the price of their 5G solutions and take the lead in the market.