TSMC files for approval to start plant in China

Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world's biggest supplier of made-to-order chips, said it has filed for approval to start production at its first plant in China by the end of this year.

The company has asked the government for final approval, said a Taiwan Semiconductor spokesman, Tzeng Jinnhaw (曾晉皓).

Tzeng made the remarks after several Chinese-language newspapers reported yesterday that TSMC has submitted an application to the government for a second-stage screening procedure to relocate an idle 8-inch plant to China, citing TSMC president Rick Tsai (蔡力行).

The company in January last year obtained preliminary approval by the government of its plan to move the equipment to China, and was allowed to channel about US$898 million there to fund its Chinese unit.

Tsai said up to 40 Chinese engineers are currently in Taiwan for a four-month to six-month training session. Following the training, the engineers will work in the Shanghai suburb of Songjiang.

Major construction at the factory is nearly complete, with dust-free rooms now under construction, according to the reports.

If the government approves the company's application by the end of the second-quarter, Tzeng said the company is confident it will start chip production at the Songjiang factory on schedule.