TSMC sets up advanced wafer plant in Nanjing

IBM engineers in a fabrication plant (fab)TSMC has signed an agreement with the Nanjing City Government to invest $3 billion building an advanced wafer manufacturing facility in China.

TSMC said in December it planned to set up its first wholly owned advanced fabrication plant in China with a $3 billion investment, highlighting the growing importance of the Chinese market for semiconductor giants.

Now TSMC Chairman Morris Chang has given out some details on the project saying that a 12-inch fab and our design service centre will be established in Nanjing.

“We aim to provide closer support to customers as well as expand our business opportunities in China in step with the rapid growth of the Chinese semiconductor market over the last several years,” said

The new plant will make 20,000 12-inch wafers per month.  Production will begin in the second half of 2018.

It was not that easy to get the deal past the Taiwan government. Taiwan has restricted manufacturing activities of its prized semiconductor sector in China, amid political tension between the neighbours. However, competition from China’s fast-growing, though fledgling chip industry has put pressure on Taiwanese companies to widen their mainland footprint.

TSMC had urged authorities to allow 12-inch facilities, which use more advanced technology processes than 8-inch plants, to be wholly owned out of concern for intellectual property protection. TSMC already has a wholly owned 8-inch chip making plant near Shanghai.