TSMC spends $187 mn for front-end equipment

TAIPEI, TAIWAN: Taiwan Semiconductor Manufacturing Company (TSMC) has said it spent about NT$6 billion (US $187.18 million) to buy front-end equipment and to construct cleanroom facilities and factory buildings.

With better prospects in 2010, TSMC has accelerated capacity expansion at its 12-inch (300mm) facilities, the company said in a filing in the Taiwan Stock Exchange (TSE).

TSMC has, so far in 2010, disclosed to the Taiwan Stock Exchange 19 items of spending on production equipment and fab construction – with a total transaction value of about NT$15 billion.

The company recently said it has completed the fifth phase of the construction at its 12-inch fab 12 at the Hsinchu Science Park (HSP). The volume-production is scheduled to start in the third quarter of 2010.

TSMC had announced at its investors meet a week ago that the company is aiming at a gross margin of 46 per cent-49 per cent from its 40nm process at the end of 2010. This margin will be similar to the company’s overall level.

The company also has disclosed plans to start construction of a new factory building at its 12-inch fab (Fab 14, Phase 4) in southern Taiwan after the Lunar New Year holidays. The equipment move-in for the factory will be towards the end of 2010.