Taipei, Oct. 29, 2012 (CENS)--Taiwan Semiconductor Manufacturing Co. (TSMC) on Oct. 23 bought for over NT$3.2 billion (US$106 million) 14.32 hectares of land at the Jhunan Park, an extension of the Hsinchu Science Park in northern Taiwan, for its 450mm wafer fab.
For the first time, world No.1 silicon foundry acquires land outright for manufacturing expansion, instead of leasing, suggesting its resolution to accelerate the development of next-generation chip-making technology.
TSMC executives pointed out that the acquisition is motivated by setting aside land in advance for next-generation technology projects, adding that the Hsinchu Science Park has run out of land for new construction.
Industry executives interpret the land acquisition as further move by TSMC to deploy advanced chip-making process technology after investing in optical-lithography tool maker ASML with Intel and Samsung on 450mm wafer and extreme ultraviolet technologies.
The company is scheduled to begin the construction in 2016 and tool up the factory in 2017, earlier than Intel's 450mm wafer fab plan to become the world's first chipmaker to come up with 450mm fab construction blueprint.
The factory is designed to develop 7-nm process technology for 450mm wafer fabs to be the pioneer.
The combination of 7-nm process with 450mm wafer allows chipmakers to cut considerable cost from current technologies by cramming more chips on a wafer.
Industry executives believe TSMC will increase capital expenditure next year from this year's US$8.5 billion citing the company's strategy that stresses heavy investment in advanced process technology to keep its lead in the foundry segment.
(by Ken Liu)
