TSEM is the fastest growing semiconductor company (in terms of percentage YoY). They mainly do specialty semiconductors. Why not add another niche to their portfolio instead of investing $3 billion on new factories? Yes they are at 100% capacity but just because they build new factories doesn't mean these new ones will also work at 100%. Moreover, the semiconductor industry is cyclical. What will be when TSM encounters a year or two of stagnant sales? Demand will drop, capacity will decrease significantly and that will show on the earnings call which will severely negatively affect the stock price. With an acquisition like TSEM, they get an instant almost $1 billion in revenues and tons of existing clients not only in the specialty market but whatever TSM currently sells that TSEM doesn't. All comments welcome.