cens logo

TSMC Plans 300mm Fab Amid China's Policy to Foster Own Chip Sector

Dec 26, 2014 | By Ken Liu

Silicon foundry giant Taiwan Semiconductor Manufacturing Co. (TSMC) plans to open its first 300mm wafer fab in China, responding to the nation's recent announcement to budget massively to foster its homegrown semiconductor industry.

China, a major semiconductor market that depended on imports to meet US$232.2 billion in semiconductor demand in 2013, plans to cultivate its semiconductor industry by investing RMB120 billion (US$19.6 billion) initially.

TSMC Chairman Morris Chang recently said the company's decision to open a 300mm wafer fab in China hinges on its national  industry policy, conceding that TSMC has little choice if China will only use chips made locally.

Chang added that TSMC is but a catalyst in China's semiconductor industry growth and plans to set up 28nm process capacity that accounts for sub-10% of its total capacity there.

TSMC's spokespeople said the investment plan is still on the drawing board without having budgeted for such capital expenditure for 2015.

Industry executives say although TSMC is running a 200mm wafer fab in China, 28nm process is a manufacturing technology used in 300mm wafer fab.

Capital equipment suppliers predict TSMC to open such a facility in China by 2016 for the Taiwan government only permits the island's chipmakers to invest in wafer fabs in China that is two generations behind their latest technologies in Taiwan. TSMC will ramp up volume production using 16nm process in 2016 after beginning volume production in H2, 2015.

Industry executives say TSMC may still choose Shanghai as the location for its 300mm wafer fab because its 200mm fab is in the same city, where semiconductor industrial clusters have developed.

They also reiterated Chairman Chang's statement above, emphasizing that for TSMC to overlook such opportunity would result in losing the huge market to Samsung and Intel.

Taiwan supplied 31% of China's imports of IC chips in 2013, which were mostly built by TSMC. .

Samsung opened a 300mm wafer fab in Xian in China to put out memory chips before the policy announcement, and can put aside the facility for production of logic chips, the major products that TSMC is contracted to make in line with China's policy.

China's homegrown Semiconductor Manufacturing International Corp. (SMIC) also  competes against TSMC with vigorous effort to migrate to 28nm process.

China's semiconductor market has grown rapidly over the last few years, mostly driven by government subsidies for IC design houses striving to develop chips for trendy applications such as Internet of Things (IoT) and wearable gear, to create demand for sufficient, advanced foundry capacity from contract chipmakers.

Industry executives say TSMC can comfortably meet such demand  with its high-yield 28nm process since it has migrated to 16nm process technology for high-end customers like Broadcom, Qualcomm and Apple.

Global Unichip Corp. can also help TSMC's to lure contracts from China's design houses, providing intellectual property to application specialty IC (ASIC) designers developing system-on-chips.

The major hurdle to TSMC's  investment plan in China is the Taiwan government, which stipulates the island's chipmakers can set up production capacity in China only through taking over plants or acquiring stocks, not building new factory.

United Microelectronics Corp. (UMC), another major foundry supplier in Taiwan to invest in 300mm fab in China, plans to acquire stocks in a chip-making venture co-founded by the Xiamen City Government and Fujian Electronics and Information (Group) Co., Ltd. (KL)


Prominent 300mm Wafer Fabs in China

Company
Location
Product
Monthly Capacity
UMC
Xiamen
Contract logic ICs
56,000 wafers
SIMC
Beijing, Wuhan
Contract logic ICs at Beijing and contract NOR flash ICs at Wuhan
50,000 wafers at Beijing and 60,000 wafers at Wuhan
Intel
Dalian
CPUs
52,000 wafers
Samsung
Xian
Storage flash memory chips
100,000 wafers
SK Hynix
Wuxi
DRAM
130,000 wafers
Source: The companies


Industry In-Focus

Latest PCB Industry Report NTI-100 Shows Growing Asian Reach</h2>

Latest PCB Industry Report NTI-100 Shows Growing Asian Reach

Sep 23, 2020

Global PCB NTI-100 2019 Fabricators report from the research agency heavyweight N.T.Information showed companies with over USD$1 billion revenue have increased compared to 2018. The report, annually compiled by Dr. Hayao Nakahar, showed in 2019, 122 fabricators were listed reporting revenue over USD$1 billion, an increase of four companies compared to the 2018 list. The report also found more ...


Surgical Masks: the New Battleground for Textile Industry</h2>

Surgical Masks: the New Battleground for Textile Industry

Sep 22, 2020

With most of society worldwide becoming more and more accustomed to wearing masks in the post-pandemic era, it has become a must-have accessory, attracting domestic textile firms into production. Traditional textile firms, such as Eclat Textile, Makalot, Far Eastern New Century, Everest, Roo Hsing, and QVE, have begun making masks, reports say. The COVID-19 pandemic has led to fewer consumers ...


Minth Group Chairman Jong-Hwa Ching. (UDN File Photo)

Leading Auto Parts Supplier Minth Group Eyes Investing in Taiwan Next Year

Sep 21, 2020

The world's leading auto parts and battery housing maker Minth Group's Chairman Jong-Hwa Ching revealed on Sunday that it would launch M&A investment plans into Taiwan next year, focusing on auto parts, vehicle batteries, and the semiconductor industries. Ching named investing in Taiwan as an advantage highlighted amid the trade tensions between the U.S. and China, and expressed optimism in de...



Industry Reports

Samsung's Potential Mini/Micro LED Partnership with Taiwanese Firms</h2>

Samsung's Potential Mini/Micro LED Partnership with Taiwanese Firms

Sep 28, 2020

The world's leading memory chip and smartphone maker Samsung Electronics is looking for potential display technology partnerships in Taiwan, specifically for mini/micro-LED industry applications. Local media Economic Daily News reported Samsung was partaking in a private project with LED driver IC supplier Macroblock Inc., a move signaling the Korean group's further ambition in the mini/micro-...


Strong Global Trade Rebound for Two-Consecutive Months: CPB</h2>

Strong Global Trade Rebound for Two-Consecutive Months: CPB

Sep 28, 2020

Since July, global trade volume continues to rebound, signaling economies' restarting in a bid to make up the worldwide lockdown this spring due to the pandemic. In a report released by the CPB Netherlands Bureau for Economic Policy Analysis, the CPB World Trade Monitor in July grew 4.8% compared to June, the largest increase since the bureau began compiling statistics in 2000. This is slightl...


Digitalization Essential for Business Survival: APEC Finance Ministers</h2>

Digitalization Essential for Business Survival: APEC Finance Ministers

Sep 26, 2020

The COVID-19 pandemic has accelerated the digitalization of membership economies, which has become an essential factor in a company's survival, reported in a unified statement released by finance ministers of representing APEC member countries. Convened under the chairmanship of Malaysian Minister of Finance Tengku Zafrul Tengku Abdul Aziz, APEC finance ministers assembled over a virtual confe...



Supplier News

Sheh Fung owns three factories, one of which located in Mituo District, KaoHsiung primarily focuses on packaging and heading.

Sheh Fung Screws' Profitable Q3 Prompts Goal for NT$2 Billion Sales by Year-End

Sep 24, 2020

■ Huang Chih-ming Located in Kaohsiung, Taiwan, Sheh Fung Screws Co., Ltd focuses on manufacturing three categories of screws: self-drilling screws, painted screws, and wood screws, often found in wood construction, sheet metal roofs, wood footpath, and DIY home decor applications. Currently, the U.S. is the firm's primary market, making up 64% of sales, 7% for Europe, 6% for Asia, and 12% for...

SHEH FUNG SCREWS CO., LTD.


Chipboard Screw, Special Wood Screw, provided by Shuenn Chang Fa

Quality Fastener Maker Shuenn Chang Fa Shows Resilience with Sales Boost

Sep 24, 2020

■ Huang Chih-ming Taiwanese quality fastener manufacturer Shuenn Chang Fa Enterprise Co., Ltd.'s (SCF) presented exceptional ability to adapt to challenging times amid the COVID-19 pandemic. Unlike other firms, SCF leveraged its production strategy with its new plant, and even saw sales performing better than expected. SCF’s newest factory expands the original 10,000-square meters factory g...

SHUENN CHANG FA ENTERPRISE CO., LTD.


Stainless Steel Screws, provides by Ray Fu Enterprise Co., Ltd.

Ray Fu's Reliable Fastener Quality for Clients Bolsters Q4 Sales

Sep 24, 2020

■ Huang Chih-ming Ray Fu Enterprise Co., Ltd. is a Taiwanese professional exporter for various fasteners and steel wires. Along with its parent company Chen Nan Iron Wire, both firms are located in Kaohsiung City of southern Taiwan. Ray Fu manages a wire rod storage, spheroidizing annealing furnace, pickling surface equipment, wiring drawing machinery, and fastener forming machine. While the C...

RAY FU ENTERPRISE CO., LTD.



Insiders' Views

Caption: Pictured from front row, third right, Changhua County Government Economic Affairs Department Director Liu Yu-ping, County Magistrate Wang Huei-mei, Secretary Chen Bo-tsun pose in front of the exhibition booth. (Photo provided by CHCIA)

Changhua County Government Shores up Biz-Matching to Global Buyers

Nov 18, 2019

■Yang Feng-Chun In a bid to assist manufacturers in Changhua County to expand their market reach overseas against severe competition in the globalized market, Changhua County Government has been an active player in pushing for a makeover and innovation of its local small and medium-sized enterprises. This is done in hopes of establishing stronger connection with international markets. An ex...


Paul Master offers high-quality chassis and engines parts for passenger cars, trucks, and industrial trucks. (Photo courtesy of Paul Master)

Paul Master Builds Reputation with Auto Chassis and Engine Parts

Nov 18, 2019

Founded in 1980, Paul Master Auto Parts Co. is headquartered in Taiwan, a professional manufacturer of chassis and engines parts for passenger cars, trucks, and industrial trucks including forklifts. General Manager Terry Liang said the company has its own professional design department, which provides customized products and specifications for global buyers, including automobile steering and...

PAUL MASTER AUTO PARTS CO.


Nan Hoang Traffic Instrument Co., Ltd.</h2><p class='subtitle'>Taiwan First brakes Technology Co., Ltd. </p>

Nan Hoang Traffic Instrument Co., Ltd.

Taiwan First brakes Technology Co., Ltd.

Sep 04, 2019

Nan Hoang Traffic Instrument Co., Ltd is one of the major manufacturers of automobile friction materials in Taiwan and globally. Chairman Austin Cheng has implemented the double-arrow strategy this year - own brand of “YangPo” is adopted to focus on global channels while the “NHC brand focuses on improving market shares in global markets, such as Europe, America, Asia, Australia, and the Middle E...



Exhibition Highlights

Stable Development and Popular Fastener Show in China</h2>

Stable Development and Popular Fastener Show in China

Sep 11, 2020

Driven by market prospects, domestic and international exhibitors actively prepare International Fastener Show China in Shanghai on November 3-5, 2020. Suffering from global epidemic and quarantine nearly half year, exhibitions are hot and popular in mainland China. Thousands of visitors join and visit the exhibitions with inquiries, and are eager to know new technology. Domestic and inter...


2020 Medical Taiwan to Host In-Person and Virtual Events</h2>

2020 Medical Taiwan to Host In-Person and Virtual Events

Sep 10, 2020

2020 Medical Taiwan is slated to kick off on Oct. 15 to Oct 17 at Nangang Exhibition Hall 2. Aside from events at the show, show organizer Taiwan External Trade Development Council (TAITRA) is also hosting the “Medical Taiwan Virtual” online edition at the same time due to travel restrictions impacted by the COVID-19 pandemic. The virtual edition will present 200 exhibitors and over 700 medic...


Automechanika Shanghai 2020 reveals online tools to navigate current trends and post-pandemic opportunities</h2>

Automechanika Shanghai 2020 reveals online tools to navigate current trends and post-pandemic opportunities

Sep 01, 2020

Ms Fiona Chiew, Deputy General Manager, Messe Frankfurt (HK) Ltd, reflected that: “As the industry starts to spring back from the effects of COVID-19, we believe that highly influential platforms like Automechanika Shanghai play a crucial role rejuvenating the market. It is our mission to help players unlock their potential. Therefore, we are continuing to realign our resources by utilising new d...