The board of Taiwan Semiconductor Manufacturing Co., Ltd. TSMC a world-caliber semiconductor supplier, has recently agreed to the firm`s first output expansion plan worth US$225 million for the fabrication plant, Fab10, located in Shanghai, China, showing the firm`s determination to keep the leading position in the industry across Taiwan and China.
Institutional investors indicate that TSMC has an edge in 130-nm process to attract IC designers` foundry orders, so the firm`s increasing focus on capacity expansion in China is very likely to bring about reshuffle of the industry in the country.
Although the Taiwanese government has relaxed restrictions on semiconductors` investments in China since this March, TSMC has yet to take significant actions in the matter, except its application to take stakes in China-based Semiconductor Manufacturing International Corp. a few months ago. Therefore, the firm`s capacity expansion in Lab10 has riveted intense attention in the industry.
Presently, TSMC`s Fab10 mainly uses 180-nm process and turns out about 45,000 wafers per month. After the capacity expansion is completed, the foundry factory`s monthly output will be expanded to over 49,000 units at the end of this year. Furthermore, the firm is also going to upgrade the factory`s production process into 130-nm, which will further drive up its maximum output. Plus, industry insiders believe that the firm will also build new factories there in the future.
In addition to the output expansion in Lab10, the board of TSMC has also approved a US$1.972 billion investment in expansion of advanced process capacity at its 12-inch wafer plant, a US$369 million in construction of Fab15, a US$258 million in special process technology, a US$116 million in capacity of LEDs, and US$218 million in construction of a solar module plant.
Worth mentioning is that the Fab15 is scheduled to be operational in the first half of next year, and expansion of advanced process capacity will be completed at its Fab12 and Fab14. These investments will help to push up the firm`s total capacity of 12-inch wafer plants to 500,000 units a month at the end of 2011.
