Leading chipmakers, including Taiwan Semiconductor Manufac-turing Co (TSMC, 台積電), could pour as much as NT$450 billion (US$147 billion) into new next-generation plants over the next few years, a government agency said yesterday.
TSMC, the world's top contract chipmaker, Powerchip Semiconductor Corp (力晶半導體) and Vanguard International Semiconductor Co (世界先進) held a groundbreaking ceremony yesterday for the construction of new factories in Hsinchu, a press release from the Administration of Hsinchu Science Park (新竹科學園區) said.
The investment projects came amid a nascent recovery of the semiconductor sector from a slowdown driven by excessive inventory a year ago, while computer memory makers are still struggling with a supply issue.
TSMC intends to spend US$5 billion over the next few years on new investment projects for a 12-inch plant, aiming to develop next-generation technologies -- 32 nanometer, 22 nanometer and 15 nanometer technologies -- Tzeng Jin-hao (
"This fab will serve research and development functions, which means that we will not hurry to utilize its full capacity," Tzeng said.
The factory will create 3,000 jobs within six years of its completion, Tzeng said.
This year, TSMC and local rival United Microelectronics Co (UMC, 聯電) said they would cut their capital spending at least 30 percent and 22 percent respectively to cope with a slowing industry growth.
Powerchip, the nation's biggest maker of dynamic random access memory chips, said yesterday its expenditure on two new 12-inch plants in Hsinchu could be as much as NT$250 billion, but that it would increase production only in response to market demand.
Vanguard, which makes driver integrated circuits for liquid-crystal-display panels at two plants, is building its first 12-inch factory to meet customer demand, it said.
TSMC holds a 37 percent stake in Vanguard.
Once the new plants are completed, the operation of the new facilities by the three companies should generate NT$300 billion in revenues and create 10,000 jobs, the Hsinchu Science Park Administration said.
TSMC shares rose 1.96 percent to close at NT$62.4 and Vanguard shares rose 0.48 percent to NT$20.8 yesterday, outperforming the TAIEX index's 0.99 percent gain. Powerchip shares dropped 1.21 percent to NT$12.25 while those of UMC were down 1.13 percent to NT$17.45.
Andrew Lu (
However, Lu wrote, "we believe the recent appreciation of the NT dollar will partly affect the recovery momentum in March."
Additional reporting by Kevin Chen
MULTIFACETED: A task force has analyzed possible scenarios and created responses to assist domestic industries in dealing with US tariffs, the economics minister said The Executive Yuan is tomorrow to announce countermeasures to US President Donald Trump’s planned reciprocal tariffs, although the details of the plan would not be made public until Monday next week, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. The Cabinet established an economic and trade task force in November last year to deal with US trade and tariff related issues, Kuo told reporters outside the legislature in Taipei. The task force has been analyzing and evaluating all kinds of scenarios to identify suitable responses and determine how best to assist domestic industries in managing the effects of Trump’s tariffs, he
TIGHT-LIPPED: UMC said it had no merger plans at the moment, after Nikkei Asia reported that the firm and GlobalFoundries were considering restarting merger talks United Microelectronics Corp (UMC, 聯電), the world’s No. 4 contract chipmaker, yesterday launched a new US$5 billion 12-inch chip factory in Singapore as part of its latest effort to diversify its manufacturing footprint amid growing geopolitical risks. The new factory, adjacent to UMC’s existing Singapore fab in the Pasir Res Wafer Fab Park, is scheduled to enter volume production next year, utilizing mature 22-nanometer and 28-nanometer process technologies, UMC said in a statement. The company plans to invest US$5 billion during the first phase of the new fab, which would have an installed capacity of 30,000 12-inch wafers per month, it said. The
Taiwan’s official purchasing managers’ index (PMI) last month rose 0.2 percentage points to 54.2, in a second consecutive month of expansion, thanks to front-loading demand intended to avoid potential US tariff hikes, the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday. While short-term demand appeared robust, uncertainties rose due to US President Donald Trump’s unpredictable trade policy, CIER president Lien Hsien-ming (連賢明) told a news conference in Taipei. Taiwan’s economy this year would be characterized by high-level fluctuations and the volatility would be wilder than most expect, Lien said Demand for electronics, particularly semiconductors, continues to benefit from US technology giants’ effort
‘SWASTICAR’: Tesla CEO Elon Musk’s close association with Donald Trump has prompted opponents to brand him a ‘Nazi’ and resulted in a dramatic drop in sales Demonstrators descended on Tesla Inc dealerships across the US, and in Europe and Canada on Saturday to protest company chief Elon Musk, who has amassed extraordinary power as a top adviser to US President Donald Trump. Waving signs with messages such as “Musk is stealing our money” and “Reclaim our country,” the protests largely took place peacefully following fiery episodes of vandalism on Tesla vehicles, dealerships and other facilities in recent weeks that US officials have denounced as terrorism. Hundreds rallied on Saturday outside the Tesla dealership in Manhattan. Some blasted Musk, the world’s richest man, while others demanded the shuttering of his