Taiwan Semiconductor Manufacturing Co’s (TSMC) board has approved US$2.89 billion in spending to increase capacity, the company said on Thursday, responding to a global chip shortage that has affected carmakers in particular.

In a brief statement, the world’s largest contract chipmaker said its board had approved the spending “for the purpose of installing mature technology capacity”.

It did not elaborate.

The company this month said that it plans to invest US$100 billion over the next three years to increase capacity at its plants, days after Intel Corp announced a US$20 billion plan to expand its capacity.

TSMC, clients of which include Apple Inc and Qualcomm Inc, has said it is working hard to increase productivity and alleviate the worldwide shortage but that supply tightness is likely to continue into next year.

The company has flagged “multiple years of growth opportunities” as the COVID-19 pandemic fuels demand for advanced chips to power devices such as smartphones and laptops.

But its business has also been boosted by the chip shortage that initially forced automakers to cut production but is now also hurting manufacturers of smartphones, laptops and even household appliances.