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.
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