Taiwan media: TSMC’s Nanjing plant expands to 28nm, aiming to solve the automotive chip crisis

According to the Taiwan Media United Daily, TSMC held an interim board of directors yesterday to expand the production capacity of the Nanjing plant by spending US$2.887 billion, and cut into the 28nm process that has not been expanded in seven years. It plans to add 40,000 pieces of production capacity. Achieving the full production target of 40,000 pieces.

In addition, the TSMC Board of Directors has also decided to approve the issuance of no more than 260 shares to employees in order to attract and retain senior executives, and to strengthen the responsibility of senior executives to create long-term shareholder value and achieve environmental, social and corporate governance (ESG) results. The rights issue case, this is TSMC’s first issue of new shares that restrict employee rights and link ESG.

It is rumored that TSMC will move its production capacity to the Nanjing plant due to the lack of water and electricity in Taiwan. Taiwan’s “Ministry of Economics” said yesterday that after checking with TSMC, its investment in Taiwan “has not slowed down, only accelerated”, and all are the most advanced manufacturing processes. TSMC’s investment in the Nanjing plant in mainland China was made with the approval of the government, and it is an old-generation technology that lags behind the current advanced process. TSMC’s current investment and future plans are a vote of confidence in Taiwan’s investment environment.

TSMC said that the expansion of the Nanjing plant and the investment of the 28nm mature process are mainly in response to the current global expansion from automotive chips and other chips required for long-distance applications.

The expansion of TSMC’s Nanjing plant confirms that TSMC’s regional balanced layout was revealed by this newspaper at the end of last year. In addition to setting up factories in the United States, the Nanjing plant also plans to expand, and decided to abandon the plan to advance the process to the 7nm process. Insensitive 28nm process.

TSMC’s supply chain revealed that most of the 28nm equipment required by TSMC’s Nanjing plant was moved from Taiwan to the mainland. TSMC’s construction of 40,000 28nm production capacity in Nanjing this time also echoes the desire of many chip design companies to expand 28nm production capacity. strongly demand.

TSMC has dominated 28nm for seven years, and has not expanded further for many years. Even though TSMC announced that it will invest 100 billion US dollars in capital expenditure in three years, most of them will invest in advanced processes below 7nm. This time, it will spend nearly 80 billion yuan in one go , expanding the Nanjing plant, and extending a helping hand to the mature process that is most urgently needed in the mainland market.

TSMC emphasized that the funds needed for the expansion of the Nanjing plant are financed by the profits of the Nanjing plant, not Taiwan’s capital increase. As for the initial issuance of restricted stocks, TSMC said that in addition to having a better connection with ESG, it can also meet the expectations of global investors for a stronger connection between the company’s executive compensation, the company’s long-term operating performance and shareholders’ rights and interests. The variable compensation of the senior executives is converted into long-term compensation in the form of stock.

TSMC Nanjing plant has a production capacity of 20,000 pieces

At the end of last year, TSMC stated that in response to the needs of customers in mainland China, the production capacity of the Nanjing plant was expanded according to the original plan. This year, the monthly production capacity has been expanded from 15,000 to 20,000. The process technology is mainly 12nm and 16nm.

According to TSMC’s financial report, TSMC’s Nanjing plant turned a profit last year, with a profit of NT$1.289 billion for the year. With the expansion of production capacity, profit in the first three quarters of this year increased to 9.129 billion yuan.

TSMC’s Nanjing plant held an opening and mass production ceremony on October 31, 2018. One year of mass production was profitable last year.

TSMC’s Nanjing plant is mainly based on 12nm and 16nm processes. It is the most advanced 12-inch wafer fab in mainland China with an initial monthly production capacity of 10,000 wafers. In response to strong customer demand, TSMC’s Nanjing plant has expanded its monthly production capacity to 15,000 pieces at the end of the previous year, and has further expanded this year, reaching the target of 20,000 pieces.


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