TSMC Must Build Another Fab

TSMC, that company that is a go to for many companies that don’t roll their own, is in need of another plant because it simply can’t keep up. It’s the kind of problem every company should have.

With orders from nVidia, AMD, and who knows how many others, it is becoming the behemoth that the general public knows nothing about.

[TechConnect]

Manufacturing giant TSMC just can’t keep up with the revived chip demand and so it has decided to construct a new 300mm wafer production facility in its home country of Taiwan and increase its 300mm advanced process (130nm and below) output by 35%.
Set to be located in the Central Taiwan Science Park, the planned fab (named Fab15) will cost TSMC about $3.1 billion and will initially manufacture chips using 40nm process technology but will transition to 28nm and 20nm later on. TSMC has had major problems with the 40nm transition but things have improved and in Q1 this node accounted for 14% of its total wafer sales.
TSMC expects to begin building Fab15 around mid-year.

How many companies do business with TSMC, more than you know, because TSMC is a company that gets a lot of “overflow” business. When any company has a facility that simply can’t keep up with demand for a particular product, the call goes out to TSMC. (Even Intel has done it!)

It will be amazing to see how this may change over the next few years, as it seems as though companies that get really big in the chip business inevitably stumble after a few quarters; Intel seems to be the only one that has not had that problem, or when they did, they had the cash reserves and knowledge to work out of it. It may be different for TSMC, however, as they don’t develop much, they just build it.

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Quote of the day:
If scientific reasoning were limited to the logical processes of arithmetic, we should not get very far in our understanding of the physical world. One might as well attempt to grasp the game of poker entirely by the use of the mathematics of probability.

- Vannevar Bush

 

 

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