TSMC plans new China plant worth $3 billion

[Daniel Nenni]

Great news for TSMC!

Taiwan Semiconductor Manufacturing Co Ltd said it plans to set up its first advanced manufacturing plant in China with a $3 billion investment, highlighting the growing importance of the Chinese market for semiconductor giants.

Located in Nanjing, China, the planned capacity of the new plant will be 20,000 12-inch wafers per month and includes the construction of a design service center, TSMC said. Production will begin in the second half of 2018, it said.

Taiwan's TSMC plans new China plant worth $3 billion | Reuters

http://www.nytimes.com/2015/12/08/business/international/taiwan-semiconductor-china-factory-chips.html?partner=rss&emc=rss


This is new right outside of Fab 12. Opening in Q1 2016:

View attachment 15982

 

[hist78]

Some additional details:

1. This new fab "would be scheduled to begin volume production of 16nm process technology in the second half of 2018."

TSMC Applies for 12-inch Wafer Fab and Design Service Center in China

Is 16nm too advance to be even considered? The logic behind TSMC decision is that by 2H2018 it will be two generations behind the most advanced industry node technology (10nm and 7nm) and consequently avoids breaking the technology transfer restriction.

2. TSMC will establish a design service center along with this new fab and expect to employ about 500 persons. The fab itself will have about 1,200 employee.

3. This fab will be the most advanced fab in mainland China and give TSMC's mainland China customers a good reason to stay with TSMC. On the other hand it makes other competitors' fabs in mainland China much less attractive and viable.

4. This new fab will be a wholly own subsidiary of TSMC, instead of a partnership or joint venture, to better protect TSMC's intellectual property.

 

[Daniel Nenni]

Is 16nm too advance to be even considered? The logic behind TSMC decision is that by 2H2018 it will be two generations behind the most advanced industry node technology (10nm and 7nm) and consequently avoids breaking the technology transfer restriction.

My belief is that China business is highly mobile where power and cost will both be highly scrutinized. 16FFC will meet both of those requirements in 2018, absolutely. I'm really surprised that FD-SOI has not been licensed by one of the China fabs. Maybe now that TSMC is bringing low cost FinFETs to China one of them will to better compete with 16FFC?