TSMC wins approval for US$20 billion investment in Arizona unit

Taipei, July 2 (CNA) The Ministry of Economic Affairs (MOEA) said Thursday it has approved a US$20 billion capital injection by Taiwan Semiconductor Manufacturing Co. (TSMC) into its wholly owned U.S. subsidiary, TSMC Arizona.

The approval was one of nine major domestic and overseas investment projects cleared by the MOEA's Department of Investment Review at a meeting Thursday.

It marked the sixth time the department has approved TSMC investments in the United States, bringing the total amount cleared for the company's U.S. operations to US$44 billion, the department said in a statement.

The latest funding will be used to build a 12-inch wafer fab and an advanced packaging plant in Arizona, with further details to be announced by TSMC, the department said.

In total, the department approved seven outbound investment projects worth about US$23.05 billion, with TSMC's Arizona investment accounting for most of the total.

Among the other outbound projects, Nanya Technology Corp. was approved to inject US$1 billion into its British Virgin Islands subsidiary, Nanya Technology International Ltd., mainly to invest in U.S. dollar time deposits and reduce foreign exchange hedging costs.

Quanta Computer Inc. was cleared to invest US$600 million in Cayman Islands-based Quanta International Ltd., which will then invest in U.S.-based Quanta Manufacturing Inc. for computer and peripheral assembly operations.

The department also approved a US$919 million capital injection by Lite-On Technology Corp. into its U.S. subsidiary, Lite-On Inc., to support the manufacture and sale of optoelectronic products, server power solutions and other power products.

Other approved outbound investments included an internal U.S. restructuring by Formosa Plastics Corp., a 1.6 billion Thai baht (US$49.48 million) expansion by Taiwan Union Technology Corp. in Thailand, and a £143 million (US$193 million) capital injection by Fubon Life Insurance Co. into its Jersey subsidiary for real estate leasing operations.

The department also approved two foreign investment projects in Taiwan worth a combined NT$6.75 billion (US$211.43 million).

They included an NT$3.58 billion capital injection into Eli Lilly Taiwan by its Dutch parent, Lilly Nederland Holding B.V., for pharmaceutical wholesale operations.

A second approved foreign investment project was an NT$3.17 billion investment by U.K.-registered Formosa 6 Holdings Company Ltd. into Formosa 6 International Investment Co., Ltd. for general investment activities.