Taiwan-based contract chipmaker TSMC received board approval to increase capex by $2.9 billion to boost capacity, as it moves to alleviate supply shortages it expects to persist into 2022.

CFO Wendell Huang last week said the company would nearly double capex year-on-year to $30 billion, after previously allocating up to $28 billion. TSMC is bracing for customers increasing inventories and a resulting impact on capacity into 2022.

It explained in a statement the additional funds were for “installing mature technology capacity”.

In a special meeting, the TSMC board also approved a proposal to issue more than 2.6 million common shares of restricted stock awards for 2021 to attract and retain executives. The move requires shareholder approval.

TSMC previously outlined plans to invest $100 billion over the next three years to expand capacity.

US chip company Intel last month committed $20 billion to increase its chip manufacturing facilities, including establishing a standalone foundry division.