AndrewJin
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thanks to the East Asia-ASEAN supply chain.Thanks for the video.
It's crazy to see China's Manufacturing Technology is Far ahead than most countries in Asia.
It's a well-run collaborative win-win strategy.
There is cooperation as well as competition.
A healthy supply chain is being strengthened.
Shanghai, July 7 (CNA) Ground was broken Thursday for a new 12- inch wafer plant of Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電), the world's largest contract chip maker, in Nanjing, in China's Jiangsu Province, with commercial production of the new site scheduled to start in the second half of 2018.
TSMC Chairman Morris Chang (張忠謀) attended the ground-breaking ceremony to observe the new milestone in the development of Taiwan's semiconductor industry in its global expansion strategies.
Several high-ranking Chinese government and Communist Party officials, including Jiangsu Provincial Party Secretary Li Qiang (李強), also attended the ground-breaking.
The new TSMC facility will be the third 12-inch wafer plant built by a Taiwanese chip maker in China after the two others, operated by the second-largest Taiwanese chip maker United Microelectronics Corp. (聯電) and memory chip supplier Powerchip Technology Corp. (力晶).
The total investments of TSMC's Nanjing plant are estimated at US$3 billion, but as TSMC will relocate its existing production equipment from Taiwan to Nanjing and the Chinese government has promised to provide investment incentives, the investment amount could be short of that figure.
Starting from the second half of 2018, mass production at the Nanjing plant is expected to kick off, with a monthly production capacity of 20,000 units, TSMC said, adding that the new plant will employ the chip maker's advanced 16 nanometer production process.
After commercial production starts, TSMC's share in the global pure foundry business is expected to grow to 57 percent from the current 55 percent, further strengthening the chip maker's lead over its peers, market analysts said.
The analysts said the plant will pose a direct threat to TSMC's Chinese competitors, in particular Semiconductor Manufacturing International Corp. (SMIC, 中芯) and Shanghai Huali Microelectronics Corp. (華力), eroding their market shares.
Currently, TSMC operates an 8-inch wafer plant in Songshan, Shanghai.
Chang did not take any questions from the press during the ground-breaking ceremony. In June, he told reporters in Taiwan that China is the fastest-growing semiconductor market in the world.
TSMC applied for approval from the government to build a 12-inch wafer plant in Nanjing late last year, and the Investment Commission issued a green light to the chip maker in February.
Simon Chang (張善政), who served as premier in the previous Ma Ying-jeou (馬英九) administration prior to May 20, said that TSMC's 12-inch wafer plant project is necessary because otherwise it would be hard for non-Chinese IC suppliers to sell their products there in the future.
(By Jackson Chang, Chang Shu-lin and Frances Huang)
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