Taiwanese foundry TSMC announced it signed a deal with the municipal government of Nanjing to build its first 300mm wafer fab in China. The company announced the $3 billion plan in December last year and said it would keep its most advanced process node technologies, key production lines and core R&D efforts in Taiwan. This is a sensitive matter as the Taiwanese government restricts chip investments in China on concerns it will lose jobs and its technological lead. The fab in Nanjing has a planned capacity of 20,000 300mm wafers per month, it's expected to open in the second half of 2018 and will utilise the 16nm FinFET process.
TSMC (Nanjing) Co. Ltd., a wholly owned subsidiary of TSMC managing a 12-inch wafer fab and a design service center, will be located in the Pukou Economic Development Zone, the company said in a press statement. Planned capacity is 20,000 12-inch wafers per month, and the facility is expected to ramp up TSMC’s 16nm process in the Nanjing fab during the second half of 2018.
“With our 12-inch fab and our design service center in Nanjing, we aim to provide closer support to customers as well as expand our business opportunities in China in step with the rapid growth of the Chinese semiconductor market over the last several years,” said TSMC Chairman Morris Chang. “We look forward to stronger collaboration with our customers to further expand our market share in China.”