TSMC moves fab builds, expansions ahead to meet ‘urgent increases in customer demand’
The fab moves follow on a large-scale recruitment campaign TSMC launched earlier this month that will see the foundry hire more than 3,000 semiconductor-related staff, primarily engineers.
By Suzanne Deffree, Managing Editor, News -- EDN, January 19, 2010
TSMC is speeding construction of new fabs and capacity expansions at existing fabs to meet what it described as “urgent recent increases in customer demand.”
The Taiwan-based company today held a topping ceremony for its Fab 12, Phase 5 building located in the Hsinchu Science Park, and announced that it expects to begin volume production there in Q3.
“The topping of our Fab 12, Phase 5 facility, and our plans to rapidly move in equipment and begin volume production there in the third quarter of this year is another example of our competitiveness in providing steadfast support for customers,” Mark Liu, TSMC's senior VP of operations, said in a statement.
Fab 12, Phase 4 and 5 are TSMC's latest generation production facilities designated for R&D, as well as initial volume production. Phase 4 began volume production in Q3 2009, while construction began on Phase 5 at the end of 2009.
TSMC estimated that a total of 4,500 employees will be working in the Phase 4 and Phase 5 complex, with R&D and production line engineers reaching approximately 3,500 people.
In addition to volume production of 28-nm products, Fab 12, Phase 5 will also serve as the company’s base for R&D of 22-nm and more advanced process technologies. TSMC is currently conducting R&D for 28-nm and 22-nm process technologies at its Fab 12, Phase 1 and 2 facilities. The foundry said it will hand 28-nm technology to the Phase 5 facility for volume production in Q4.
In addition to capacity expansion at Fab 12, TSMC said it will also begin construction on Fab 14, Phase 4 located at its Tainan, Taiwan, site. Groundbreaking is scheduled following the end of Chinese New Year (ending February 19 in Taiwan), with the facility expected to be complete and ready for equipment move-in at the end of 2010, TSMC said.
TSMC did not offer further detail on what it considered “urgent recent increases in customer demand" and did not detail how much capacity the expansions would allow for in its statement.
Today’s moves follow on a large-scale recruitment campaign TSMC launched earlier this month. Through the campaign, the company expects to hire more than 3,000 semiconductor-related staff, primarily engineers.
The moves also were announced today as company chairman Morris Chang said at a Taipei business forum that TSMC plans to increase its 2010 R&D spending by 25% over 2009 spending to $850 million (NT$27 billion), according to numerous reports out of Taiwan.
TSMC, like most major players in the semiconductor industry, was hit by the 2009 recession. The company in its December 2009 sales report released on January 8, stated that full-year 2009 sales of $8.96 billion (NT$285.74 billion) were down 11.2% as compared to 2008 sales. Sales for the month of December totaling $956 million (NT$30.47 billion), however, had shown growth of 3.8% as compared to November and growth of 131.5% as compared to December 2008.
TSMC is scheduled to report on its December quarter and full-year 2009 on January 28.
