TSMC Expanding Shanghai Foundry Plant to Rival SMIC

Taipei, March 23, 2011 (CENS)--Taiwan Semiconductor Manufacturing Co. (TSMC) is expanding its Shanghai factory at full speed after the factory lost No.1 title in mainland China's foundry industry last year to Semiconductor Manufacturing International Co. (SMIC), according to suppliers of chip-making equipment.

Market research organization iSuppli points out that SMIC last year unseated the TSMC Shanghai factory as the mainland's No.1 foundry supplier. SMIC has vowed to boost output at its 300mm wafer fabs to two million wafers of chips a year with revenue of US$5 billion in five years, marking an annual compound growth rate of 25%.

Equipment suppliers said after procuring refurbished 200mm fab tools from Hynix Semiconductor, TSMC has recently acquired similar tools from Samsung and Toshiba for expansions at the factory.

The Shanghai factory is set to boost output to 110,000 wafers of chips a month sometime this year.

TSMC executives said the company will purchase refurbished equipment not only for its Shanghai factory but also for its 300mm wafer fabs in Taiwan to reduce costs.