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TSMC Approves More Capital for Advanced Process R&D

2014/05/28 | By Ken Liu

TSMC's board of directors recently approved additional capital allocations for advanced technology R&D. (Photo courtesy of TSMC).
TSMC's board of directors recently approved additional capital allocations for advanced technology R&D. (Photo courtesy of TSMC).
Taiwan Semiconductor Manufacturing Co.'s (TSMC's) board of directors recently approved allocating an additional US$675.23 million of capital expenditure, with US$568.23 million set aside for establishing, converting, and upgrading the company's advanced technology capacity, and the remaining US$107.00 million for R&D and maintenance expenditure.

Taiwan's industry executives consider the allocations as part of the company's efforts to boost its 20nm foundry capacity for Apple's decision to have all of its A8 processors made at TSMC and accelerate its production plan involving 16nm process technology for winning Apple's A9 processor contracts.

The major pure silicon foundry has begun general production of A8 processors in the second quarter of this year in preparation for the high season in the third quarter.

Industry executives expect Apple to contract TSMC to make at least half of its A9 processors using the proprietary 16nm FinFET (Fin Field Effect Transistor) process technology, leaving production of the rest to Samsung and Intel.

TSMC Co-Chief Executive Officer Mark Liu stressed that microchips can gain 15% more power while saving 30% more power consumption than usual with the company's 16nm FinFET process technology, merits that can be achieved by 14nm FinFET technology from the company's competitors.

TSMC estimates sales of 20nm foundry service to account for around 20% of its revenue for the fourth quarter of this year and around 10% of its revenue for 2014.

For 2014, the company plans capital expenditure of US$9.5 billion to US$10 billion. (KL)