Contract chip manufacturing giant Taiwan Semiconductor Manufacturing Company (NYSE: TSM) recently announced that for 2018, it expects to boost its capital expenditure budget to between $11.5 billion and $12 billion, up from a prior range of $10.5 billion to $11 billion. Chip manufacturers' capital expenditures tend to consist largely of the very expensive tools required to develop and manufacture chips, and Taiwan Semiconductor (TSMC) is one of the world's largest logic-chip manufacturers. An Apple A10 chip, manufactured by TSMC, inside of an iPhone 7.