Taipei, May 12 -- Taiwan Semiconductor Manufacturing Company (TSMC) has approved a capital budget of USD 31.28 billion to expand production capacity and support long-term growth amid the ongoing global artificial intelligence-driven chip boom, according to a report by Focus Taiwan.

In a statement issued after a board meeting on Tuesday, the world's largest contract chipmaker said the approved capital appropriation plan will be used for installation of advanced technology capacity and construction of fabrication facilities.

The move comes as demand for semiconductors continues to rise sharply due to growing adoption of 5G, AI and high-performance computing applications.

At an investor conference held in mid-April, TSMC had forecast that...