RealTime IT News

TSMC, Others Start Work on $14.7B Chip Complex

Top contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC, NYSE: TSM) and two other Taiwan chipmakers began work on Tuesday on new plants for a T$450 billion ($14.7 billion) complex that TSMC said is part of a long-term commitment to investing in the island.

The TSMC facility at the Hsinchu Science Park will include an advanced 12-inch wafer plant to make chips for computers and a wide range of consumer gadgets.

"We will have both R&D and manufacturing in the new plants," said J.H. Tzeng, a TSMC spokesman, although he declined to give his company's investment figure.

The Hsinchu Science Park said in a statement on Tuesday that TSMC, Powerchip Semiconductor and Vanguard were investing a total T$450 billion to build new plants, creating eventual production value of T$300 billion annually.

The three companies conducted a joint groundbreaking ceremony.

On Tuesday, TSMC shares rose 2 percent, Powerchip shares fell 1.2 percent and Vanguard shares gained 0.5 percent, while the main TAIEX share index jumped 1 percent.