TSMC, Nanjing sign to build Chinese wafer fab

March 28, 2016 // By Peter Clarke
Foundry Taiwan Semiconductor Manufacturing Co. Ltd. (Hsinchu, Taiwan) has signed an investment agreement with the municipal government of Nanjing, China to construct a 300mm wafer fab there.

TSMC already operates one 20mm fab in China but has accelerated plans to build a 300mm wafer fab in China with the lifting of a Taiwanese legal prohibition (see TSMC's 300mm Chinese wafer fab wins approval ).

TSMC will spend about $3 billion to establish TSMC (Nanjing) Co. Ltd., a wholly owned subsidiary managing a 12-inch wafer fab and a design service center. The fab will be located in the Pukou Economic Development Zone. Planned capacity is 20,000 12-inch wafer starts per month, and the facility is scheduled to commence production of 16nm FinFET process technology in the second half of 2018.

"With our 12-inch fab and our design service center in Nanjing, we aim to provide closer support to customers as well as expand our business opportunities in China in step with the rapid growth of the Chinese semiconductor market over the last several years," said Morris Chang, chairman of TSMC, in a statement.

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