Taiwan Semiconductor Manufacturing Company (TSMC) plans to allocate US$1 billion on R&D spending in 2011, compared with the US$800 million budgeted for 2010, according to company chairman and CEO Morris Chang.

Chang pointed out that capex allows the company to develop its R&D capabilities and production framework, which often result in increased sales or profitability. TSMC's capex for 2010 is set at NT$5.8 billion (excluding a budget for new businesses), showing a significant jump from US$2.9 billion in 2009 and an average of US$2 billion annually between 2004 and 2008, Chang noted.

Chang earlier revealed that TSMC expects sales to meet a 40% growth target in 2010 and another 10% rise in 2011. The IC foundry turned in NT$295.74 billion (US$9 billion) in 2009 consolidated revenues.

By: DocMemory
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