TSMC board approves US$2.89 billion fund to expand capacity
Taipei, April 23 (CNA) Taiwan Semiconductor Manufacturing Company's (TSMC) board of directors on Thursday approved an allocation of US$2.89 billion to increase the company's manufacturing capacity, which is expected to be used to expand its plant in Nanjing, China.
In a short statement, the world's leading contract chip manufacturer said that the additional spending will go toward "installing mature technology capacity."
A source within TSMC later told CNA that the money will be used to boost capacity at the company's Nanjing plant, aiming for production of an additional 40,000 28 nanometer chips per month.
The increased capacity will begin to take effect in the second half of 2022 and will reach the planned monthly output by mid-2023, the source said.
Expanding the Nanjing plant, which currently produces 20,000 16 nanometer chips per month, was deemed the fastest way of meeting the strong client demand for 28 nanometer chips, the source said.
According to the TSMC website, the applications of 28 nanometer include central processing units, graphic processors, smart phones, consumer electronics and automobiles.
Meanwhile, the company also responded on Thursday to rumors that it plans to move the monthly production of 20,000 12 inch chips from Taiwan to its Nanjing factory because of the risk of water shortages in Taiwan.
In a statement to the press, the company said it will publicly announce any decisions regarding capacity planning, and it reiterated that Taiwan remains an important manufacturing base.
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