TSMC Accelerates 28nm Process Output

Taipei, Nov. 3, 2011 (CENS)--Taiwan Semiconductor Manufacturing Co. (TSMC) will start volume production at the first facility in its Fab 15 building earlier than originally scheduled, suggesting the foundry giant is competing to ramp up general production based on 28nm process technology.

The facility is designed to have maximum monthly capacity of 50,000 wafers of tailor-made chips using 28nm process, making it the most advanced chip-making factory in the Central Taiwan Science Park.

Industry executives pointed out that although Samsung will remain TSMC's foremost competitor next year in contract chip manufacturing based on 28nm process technology, Samsung is still behind TSMC in terms of technological progress. They believe TSMC would be able to rake in considerable revenue next year as long as it continues stepping up 28nm process deployment.

TSMC Chairman and Chief Executive Officer (CEO) Morris Chang recently said 28nm process will become a major driver of the company's revenue growth given the robust demand for 28nm foundry services. He estimated 28nm foundry to account for 10% of the company's revenue next year, up from current 0.5%. Industry executives estimated the percentage will rise to 2% by the end of this year thanks to volume production starting at the new facility.

Chang said the company's wafer output using 28nm process will reach 24,000 units a month in the third quarter next year, with the Fab 15's first factory accounting for the majority. The new factory is estimated to reach full capacity in early 2013.

The second facility in the Fab 15 building is estimated to start volume production in the fourth quarter next year after being tooled up in the first quarter of 2012. Construction of the third and fourth facilities will start sometime next year and be completed in late 2013. The latter two factories are likely to be equipped with 20nm tools.

Fab 15 calls for a total of NT$400 billion (US$13.3 billion at US$1: NT$30) in investment spending.