Taiwan Semiconductor Manufacturing Company (TSMC) is ramping up the monthly capacity at its Songjiang 8-inch fab in Shanghai to 50,000 wafers by the end of 2010 compared to the current 45,000 units, and expects to grow the level further to 60,000 in 2011, according to company vice chairman FC Tseng.

TSMC saw the Songjiang fab turn around in the second quarter of 2010, posting quarterly profits for the first time in seven years, said Tseng.

Tseng also pointed out that demand for advanced processing in China is growing. Citing subsidiary Global Unichip as an example, Tseng noted that the IC design service provider has already obtained orders for 40nm products from about 10 clients, one of which is a China-based chip designer. Tseng expects Global Unichip to land new orders for 40nm chip production from more China-based customers in 2011.

In addition, Tseng commented that 2010 will be a year of extraordinary growth for the semiconductor industry, and the business climate for the first quarter of 2011 may be slightly worse than that during the prior quarter. For all of 2011, Tseng said whether the sector can return to normal seasonality and growth still needs further observation.

Tseng believes that for foundry chipmakers, capex budgets should peak in 2010. Capex for 2011 will depend on the demand for 40nm and 28nm processing, Tseng added.

By: DocMemory
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