TSMC announced on January 12, 2011 that the company is going to buy the P4 fab which is under construction and the P5 fab construction land from Taiwan's Powerchip Semiconductor, aiming to tap surging chip demand from clients, according to the Commercial Times of Taiwan. The purchase deal is valued at NT$2.9 billion (US$100 million; US$1=NT$29.0). Situated at the Hsinchu Science Park in northern Taiwan, it is reported that Powerchip's P4 plant and P5 construction site will be used to build two 12-inch wafer fabs by TSMC. Combining with other 12-inch fab production capacity, TSMC aims to produce 250,000 wafers each month.