TSMC considering Jiangsu Province for production site

Taiwan Semiconductor Manu-facturing Co (TSMC, 台積電), the world's largest contract manufacturer of semiconductors, is considering Jiangsu Province as the location of its first 8-inch wafer foundry in China, local media reported yesterday.

TSMC has already completed a preliminary study and may set up an 8-inch wafer plant in either the Suzhou New District (蘇州新區) or the Wuxi-Singapore Industrial Park (無錫新加坡園區) in the eastern Chinese province, according to a Chinese-language daily, quoting undisclosed sources.

The Taiwan chip giant will chose one of the two sites for its investment, with TSMC chairman Morris Chang (張忠謀) set to meet with authorities from both districts to discuss details, the report said.

TSMC, however, refused to confirm the reports, saying it wasn't clear if Chang had plans to travel to China.

Taipei may soon lift restrictions on cross-Strait investments in 8-inch wafer foundries in line with a consensus reached at a landmark Economic Development Advisory Conference (經發會) in August of last year.

Taiwan bans some China-bound investments in an effort to prevent it becoming over-dependent on China, which continues to maintain an unfriendly posture toward Taiwan.

Local business leaders have been urging the government to loosen investment restrictions. TSMC said late last year that it needed to tap into the developing Chinese semiconductor and electronics sector.

Chang said the chip industry needs time to become established in China. He said TSMC still has no timetable on when to make the move.

The company already has a liaison office in Shanghai.