Taipei, Sept. 2, 2010 (CENS)--Reaping after-tax net income of US$8.7 million last quarter, Taiwan Semiconductor Manufacturing Co.’s (TSMC’s) factory at the Songjiang District of Shanghai turned profitable the first time in seven years, to which
TSMC executives attribute mostly increased orders in China and growing production efficiency.

The earnings helped swing the factory’s sales for the first half of this year to a net profit of US$4 million by offsetting net loss of US$4.7 million it had in the first quarter this year.

The earnings result inspired TSMC`s executives to be upbeat about the factory`s operation throughout this year. They estimated the factory`s output to surge to 49,000-50,000 200mm silicon wafers a month at the end of this year, up from current 45,000 wafers and 40,000 wafers turned out late last year.

With output increased, the factory`s earnings, they expected, will accordingly rise. Demand surge in China has prompted TSMC to add US$225 million to the factory`s capital and apply for Taiwan government`s permission to upgrade the factory`s process technology to 0.13-micron node from current 0.18 micron.

Taiwan`s IC design houses pointed out that China`s design houses specializing in 3G wireless chips and terrestrial digital multimedia TV/handset broadcasting chips are moving towards 0.13-micron process from 0.18-micron process, posing lucrative business opportunities to the Shanghai factory.

Throughout last year, the factory posted loss of US$284 million or so, increasing around 47% from a year earlier.
(by Ken Liu)