TSMC mainland Chinese investment OK’d by MOEA

2016/02/05

An investment plan by Taiwan Semiconductor Manufacturing Co. Ltd. for a 12-inch wafer fab and design center in the mainland Chinese city of Nanjing was greenlighted Feb. 3 by the ROC Ministry of Economic Affairs.

Boasting a capacity of 20,000 wafers per month, the wholly owned facility is set to begin mass production using 16 nanometer process technology in the second half of 2018. At the same time, the center will help TSMC build its own design ecosystem on the other side of the strait.

TSMC Chairman Morris Chang said in view of the rapid growth of the mainland Chinese semiconductor market, the plan enables the company to provide closer support for its customers and tap further business opportunities.

This is the first TSMC project in mainland China after the MOEA eased relevant regulations in September 2015. The chipmaker operates an 8-inch wafer fab in Shanghai.

According to the MOEA Investment Commission, the US$3 billion project is in compliance with ROC regulations governing investment proposals in mainland China by Taiwan-based semiconductor and display panel firms.

Under existing rules, domestic firms can make controlling investments in mainland China if they have matching expansion projects in Taiwan, do not initiate layoffs and maintain at least a generation lead locally in process technology, among other conditions.

The commission said TSMC will begin mass production using 10nm technology later this year, and will start testing the 7nm process in 2018 to ensure Taiwan’s semiconductor industry maintain its technological advantage.

TSMC plans to invest NT$860 billion (US$25.44 billion) in Taiwan over the next three years, and increase its workforce by 2,500 to 3,000 employees annually during the period.

The additional capacity should see TSMC’s share of the 2018 mainland Chinese and global markets rise from 46 percent to 50 percent and 55 percent to 57 percent, respectively, further strengthening its international leadership position.

Hsinchu City-based TSMC is a world leader in contract integrated circuit manufacturing services, accounting for 53.7 percent of the sector’s global output in 2014, according to U.S.-headquartered technology research firm Gartner Inc.

The company was also ranked No. 1 for patent power last year by IEEE Spectrum—the flagship magazine of New York-based Institute of Electrical and Electronics Engineers.

Source: Taiwan Today (http://taiwantoday.tw/ct.asp?xItem=242062&ctNode=2194&mp=9)