Taiwan Semiconductor Manufacturing Company, the world's largest contract chipmaker, will invest an extra US$222 million in its Shanghai plant and increase the plant's capacity by up to fivefold, the Shanghai Daily reported yesterday.

TSMC plans to increase its investment in its eight-inch silicon wafer plant in Shanghai's Songjiang Science and Technology Park from US$898 million to US$1.12 billion, the newspaper quoted Sheldon Wu, head of TSMC's Shanghai office, as saying.

"We will process about 35,000 silicon wafers each month," Wu said.

The company had previously announced it would invest US$898 million to build a wafer plant.

TSMC planned to build four wafer factories in Songjiang science park and the plant under construction is part of the first-phase.

Its final monthly capacity could reach 70,000 wafers, local officials with the park said.

The main reasons behind TSMC's expansion plan are the city's ideal geographic location, preferential policies and decent labor resources, Wu was quoted as saying.

The company receives a 30 percent discount on land rent, Wu said.

"The government is also building a 'university city' nearby and we expect it will provide us with high-quality (workers). Also, companies in the park can clear customs within four hours."

By: DocMemory
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