TSMC Invests US$2.8 B to Expand Nanjing Fab for Auto Chips

tsmc investment, nanjing fab, auto chipSource: Adobe Stock

TSMC announced yesterday to invest US$2.887 billion in expanding its chip fabrication capacity on mature technologies. This is the first time TSMC is making a turn to financially boost the mature manufacturing technologies owing to auto chip shortages. 

The new investment will include expansions of the Nanjing fab to produce 28nm process chips with plans to reach a monthly capacity of 40 thousand units for the 28nm nodes production to meet automotive chip demands.

Moving to Nanjing due to the drought in Taiwan?

According to Liberty Times Net, TSMC emphasized that given the current production capacity, Nanjing fab is the quickest to be able to set up manufacturing capacity and deliver 28nm chips for emergent needs, diminishing the rumor of the investment owing to Taiwan’s recent severe drought.

Volume shipment is slated for the second half of 2022 and is expected to reach 40 thousand chip production capacity by mid-2023.

Auto chip shortages driving decision

Industry sources pointed out the move for fab expansion in Nanjing shows the urgency of the auto chip shortages in the US, so the equipment and machinery needed for the fab expansion would be permitted.

TSMC decided to invest in Nanjing in 2015, the Nanjing fab has since become the most advanced in China. It had begun volume shipment at the end of 2018 and mainly produces 12/16 nm processes with a monthly capacity of 20 thousand units of the 12-inch wafer.

Last year the Nanjing fab yearly revenue had reached NTD$12 billion, but only contributes to less than 3% of TSMC’s total revenue.

 

Source: money udn, China Times