TSMC recently announced that it has obtained the land-use right for its Nanjing fab, dubbed Fab 16, in China with the transactional amount of NT$ 786 million (USD26 million, USD1= NT$30.2), according to United Daily News on December 18. TSMC has been granted the right to use the land for 50 years. Situated at the Pukou Economic Development Zone, the Fab 16 is expected to begin shipments in May, 2018, six months earlier than planned. Upon completion, it will be the first fab in China capable of producing 16nm chips to meet the rising demand from China. Meanwhile, the company stated that 7nm chips are currently produced at Fab 12, and Fab 15 will also produce 7nm chips. The construction of Fab 18 will kick off next year and by then TSMC will have three plants capable of producing 5nm chips which are expected to enter trial runs in the first half of 2019. Meanwhile, the company's new fab for manufacturing 3nm chips will be located at Southern Taiwan Science Park with a total investment amount of USD$200 billion.