Fri, May 30, 2014 - Page 14 News List

TSMC allocates US$1.8 billion to R&D for this year

Staff writer, with CNA

Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is planning to spend US$1.8 billion on research and development to maintain its technological lead.

At a technology symposium in Hsinchu yesterday, TSMC president and co-chief executive Wei Che-chia (魏哲家) said R&D spending this year will be up more than 200 percent from 2009’s level, as well as topping the US$1.6 billion spent last year.

The world’s largest contract chipmaker’s R&D team numbers 4,500, Wei said.

TSMC said this year’s R&D funds will largely be spent on sophisticated technology, including 28 nanometer, 20nm and 16nm processes.

The company is also planning to spend US$9.5 billion to US$10 billion on capital expenditure this year, Wei said.

Revenue generated from TSMC’s 28nm process rose to US$6 billion last year, up from US$2.1 billion in 2012 and US$150 million in 2011, he said.

Chips made using the 28nm technology are expected to account for 30 percent of the company’s total sales this year, he said.

Chip production on the 20nm process began in January and the firm will begin production on the 16nm process early next year.

Wei said the Internet of Things, which is expected to create about US$1.9 trillion in business opportunities around the world, will serve as a driver for the growth of the global semiconductor industry.

TSMC last month raised its sales growth forecast for the world’s IC industry this year from 5 percent to 7 percent, and for global semiconductor foundry from 10 percent to 14 percent.

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