TSMC to build plants in Kaohsiung, Tainan, Taichung over next 3 years: NDC

Taipei, Nov. 21 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) is planning to build new factories in Kaohsiung, Tainan and Taichung over the next three years, the head of the Cabinet's policy-planning agency said Thursday.

Liu Chin-ching (劉鏡清), head of the National Development Council (NDC) and a TSMC board member, made the comments during a question session at the Legislature.

He said that according to current plans, TSMC will build new factories in the three cities over the next three years, while the government will ensure that they have sufficient water and power supplies.

Liu was also asked by Kuomintang lawmaker Yeh Yuan-chih (葉元之) to comment on reports that the US$6.6 billion in subsidies TSMC granted by the U.S. Commerce Department last week came after the company pledged to produce chips using its advanced A16 process.

In response, Liu said TSMC originally planned to move some production of the 3 nanometer (nm) process to the U.S., while 2 nm production would remain in Taiwan.

Regarding the A16 chip, because some of its products are made with the 3 nm process, it could be produced in the U.S., Liu said.

"This isn't something we are happy about, it's because of political factors," Liu said, without elaborating.

"Although costs are higher in the U.S., if a customer is willing to place an order and TSMC is able to produce it, then we will do it. It's impossible that we would not accept the order," he said.

Meanwhile, Liu added he "had not received any information" about reports that TSMC would hold a completion ceremony for one of its Arizona fab sites in December, saying only that he had been sent a notification to attend a board of directors meeting in the U.S. on Feb. 10.

Foreign media reports citing industry sources said last week that the ceremony had been postponed following the U.S. election, and could be rescheduled until after U.S. President-elect Donald Trump takes office on Jan. 20.