Global Sources
EE Times-Asia
Stay in touch with EE Times Asia
EE Times-Asia > Manufacturing/Packaging

TSMC okays $1B expansion budget

Posted: 16 May 2008 ?? ?Print Version ?Bookmark and Share

Keywords:TSMC expansion plan? 300mm fab? semiconductor?

Taiwan Semiconductor Manufacturing Co. Ltd said it has approved a capital appropriation of $995 million to expand a 300mm fab and increase its advanced process capacity.

TSMC said its capital-spending plan involves Fab 12, located at its headquarters in Hsinchu. The world's largest silicon foundry provider recently broke ground on a new module in Fab 12. In total, reports claim Fab 12 can process 70,000 wafers a month.

Rick Tsai, president and CEO, recently said TSMC is "pulling in equipment orders to meet the increasing demands."

However, TSMC's overall capital spending is expected to drop. For 2008, total capital expenditure for TSMC is seen to be around $1.8 billion, compared to $2.6 billion spent in 2007. The $995-million figure for Fab 12 will be part of the $1.8-billion budget.

At the same time, TSMC's board also approved a plan to repurchase up to $1 billion, or at least 500-million shares, of the company's common shares from the open market.

TSMC plans to buyback shares at a price range from NT$48.25 to NT$100.50 per share from May 14 to July 13 this year and cancel the repurchased shares.

In 2007, TSMC and Philips agreed to a multiphased plan to facilitate an exit by Philips from its current shareholding in TSMC. Last year, the first three phases of the plan were completed.

"This buyback program by TSMC is part of the fourth phase of the multiphase plan and Philips intends to continue participating in the program," said Lora Ho, TSMC chief financial officer. "It has been, and still is, Philips' intention not to sell TSMC shares during the period of a TSMC buyback-program."

Philips currently holds approximately 5 percent of TSMC's common shares, with a market value of approximately $2.8 billion.

- Mark LaPedus
EE Times

Article Comments - TSMC okays $1B expansion budget
*? You can enter [0] more charecters.
*Verify code:


Visit Asia Webinars to learn about the latest in technology and get practical design tips.

Back to Top