Asia Express - East Asian ICT
TSMC to Inject US$3.8 Bln into Taiwan and China Units
August 13, 2010
Taiwanese TSMC announced on August 10, 2010 that the company's board of directors has passed investment expansion plans in Taiwan and China, according to the Commercial Times of Taiwan. Total investments are expected to reach US$3.8 billion, and approximately US$3.6 billion will be injected into its Taiwan units. Investment projects in Taiwan include a US$1.9 billion investment in expanding advanced process technology capacity at its 12-inch wafer fab, US$369 million in constructing Fab 15 , and US$258.1 million in increasing special technology capacity, according to the same source. In addition, TSMC decides to develop new businesses in Taiwan, spending US$101.6 million on constructing an LED (Light Emitting Diode) production line in the Hsinchu Science Park and US$218 million on building a solar cell fab in the Central Taiwan Science Park. It is reported that TSMC also plans to increase the company's R&D spending and sustaining capital expenditure from US$534.6 million to US$678.7 million in 2010.

As part of the overall investment plan, it is projected that TSMC is going to spend up to US$225 million on its Chinese unit located in Songjiang, Shanghai, aiming at production expansion.It is reported that TSMC plans to upgrade the process technology at its Songjiang plant from 0.18 micron to 0.13 micron. Currently the investment proposal is pending review by Taiwan's Investment Commission under Ministry of Economic Affairs.