Taiwan Semiconductor Manufacturing Company’s (TSMC, 台積電) board of directors on Thursday approved an allocation of US$2.89 billion to increase the company’s manufacturing capacity, which is expected to be used to expand its plant in Nanjing, China.
In a short statement, the world’s leading contract chip manufacturer said that the additional spending would go toward “installing mature technology capacity.”
NANJING FAB
A source within TSMC later told the Central News Agency that the money would be used to boost capacity at its Nanjing fab, aiming for production of an additional 40,000 28-nanometer chips per month.
The new capacity would begin commercial production in the second half of next year and would reach its planned monthly output by the middle of 2023, the source said.
Expanding the Nanjing fab, which currently produces 20,000 16-nanometer chips per month, was deemed the fastest way to meet customers’ demand for 28-nanometer chips, the source said.
According to TSMC’s Web site, applications for 28-nanometer chips include central processing units, graphics processors, smartphones, consumer electronics and automobiles.
STOCK INCENTIVE
TSMC’s board of directors also approved the company’s first employee restricted stock awards, with plans to issue a maximum of 2.6 million common shares for this year in an effort to attract and retain corporate executives, and to link their compensation with shareholders’ interests, and achievements in environmental, social and corporate governance.
The proposed share issuance is subject to approval by shareholders at the annual general meeting on June 8.
TRANSPARENCY
The company also shot down rumors that it plans to move monthly production of 20,000 12-inch chips from Taiwan to its Nanjing factory, because of the risk of water shortages in Taiwan.
The company will publicly announce any decisions regarding capacity planning, it said in a separate statement, adding that Taiwan remains an important manufacturing base.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) secured a record 70.2 percent share of the global foundry business in the second quarter, up from 67.6 percent the previous quarter, and continued widening its lead over second-placed Samsung Electronics Co, TrendForce Corp (集邦科技) said on Monday. TSMC posted US$30.24 billion in sales in the April-to-June period, up 18.5 percent from the previous quarter, driven by major smartphone customers entering their ramp-up cycle and robust demand for artificial intelligence chips, laptops and PCs, which boosted wafer shipments and average selling prices, TrendForce said in a report. Samsung’s sales also grew in the second quarter, up
LIMITED IMPACT: Investor confidence was likely sustained by its relatively small exposure to the Chinese market, as only less advanced chips are made in Nanjing Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) saw its stock price close steady yesterday in a sign that the loss of the validated end user (VEU) status for its Nanjing, China, fab should have a mild impact on the world’s biggest contract chipmaker financially and technologically. Media reports about the waiver loss sent TSMC down 1.29 percent during the early trading session yesterday, but the stock soon regained strength and ended at NT$1,160, unchanged from Tuesday. Investors’ confidence in TSMC was likely built on its relatively small exposure to the Chinese market, as Chinese customers contributed about 9 percent to TSMC’s revenue last
Taiwan and Japan will kick off a series of cross border listings of exchange-traded funds (ETFs) this month, a milestone for the internationalization of the local ETF market, the Taiwan Stock Exchange (TWSE) said Wednesday. In a statement, the TWSE said the cross border ETF listings between Taiwan and Japan are expected to boost the local capital market’s visibility internationally and serve as a key for Taiwan becoming an asset management hub in the region. An ETF, a pooled investment security that is traded like an individual stock, can be tracked from the price of a single stock to a large and
Despite global geopolitical uncertainties and macroeconomic volatility, DBS Bank Taiwan (星展台灣) yesterday reported that its first-half revenue rose 10 percent year-on-year to a record NT$16.5 billion (US$537.8 million), while net profit surged 65 percent to an unprecedented NT$4.4 billion. The nation’s largest foreign bank made the announcement on the second anniversary of its integration with Citibank Taiwan Ltd’s (花旗台灣) consumer banking business. “Taiwan is a key market for DBS. Over the years, we have consistently demonstrated our commitment to deepening our presence in Taiwan, not only via continued investment to support franchise growth, but also through a series of bolt-on acquisitions,” DBS
RSS