Pure-play foundry TSMC signs MOU for China fab investment - News Flash - Brief Article

Electronic News, Sept 2, 2002 by Alex Romanelli

TAIWAN SEMICONDUCTOR MANUFACTURING CO. (TSMC) has signed a memorandum of understanding (MOU) with Shanghai's Songjiang district to build a production plant in China. The MOU is contingent on two conditions, set by TSMC.

"Condition one is that the Taiwanese government approves our investment plan for mainland China," said Chuck Byers, TSMC's director of worldwide brand management. "The second condition is that we have a business need, and we dictate whether there is a business need or not."

Byers said TSMC hasn't filed its application with the Taiwanese government but expects this to happen within the next 60 to 90 days, or maybe even sooner.

The Taiwanese government has certain conditions related to technology levels, method of investment and production operations regarding any of its semiconductor companies investing in less-advanced 8-inch wafer fabrication plants in China.

Songjiang is Shanghai's government-run economic development arm.

"It is the Shanghai Songjiang that is building the fab," Byers said. He declined to divulge details but said TSMC would not be investing cash in the facility. "Let's just say there will be non-specified appropriate financial arrangements."