Taiwan Semiconductor Manufacturing Company announced plans to buy a 218,156-square-meter plot of land, located at the Hsinchu Science Park (HSP), northern Taiwan, from Powerchip Technology for NT$2.9 billion (US$100 million). The acquisition includes an empty 12-inch fab on the site.

Powerchip originally planned to build two 12-inch plants at the site sold to TSMC. But due to an industry slowdown, the DRAM maker has left a 12-inch fab idle after its shell construction was completed and postponed the construction of the other 12-inch facility.

The sale follows Powerchip's recent announcement that the company has reached an agreement with Rexchip Electronics about overdue payments.

TSMC chairman and CEO Morris Chang earlier revealed the foundry's capex for 2011 will be higher than the record target in 2010. TSMC also plans to allocate US$1.1 billion on R&D spending in 2011, compared with the US$945 million budgeted for 2010.

By: DocMemory
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