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TSMC to spend $2.5 bn on tech upgrade

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CIOL Bureau
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TAIPEI, TAIWAN: TSMC, the world's largest contract chipmaker, will spend $2.5 billion upgrading its advanced technology capabilities, as the company prepares for stiffer competition from its rivals.

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About $2.24 billion will be used to expand capabilities at its 12-inch facility, the company said in a statement, while some $254 million will be used to upgrade the facility itself.

The extra money will not push up the company's capital expenditure budget for this year as it will be used until 2010, a TSMC official said.

Analysts have said TSMC is spending more on technology as it prepares to face new competition from rivals such as UMC and Globalfoundries, the chip maker co-owned by Advanced Micro Devices and Abu Dhabi investor Advanced Technology Investment Co.

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