TSMC Expects Moderate Chip Market Growth in 2011

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Sales in the overall semiconductor market in 2011 will log 5% growth, and the foundry sector will see a larger 14% increase, according to Taiwan Semiconductor Manufacturing Company (TSMC) CEO and chairman Morris Chang. TSMC expects its revenues to grow by over 15% in 2011, outperforming the industry average, said Chang. TSMC’s capex for 2011 is set to be higher than the record target in 2010, Chang indicated.

Taiwan Semiconductor Manufacturing Company

TSMC will continue to increase research spending to push forward development of more advanced process technologies, Chang said. The foundry chipmaker plans to budget US$1.1 billion for R&D expenditure in 2011, up from US$945 million in 2010, Chang added. The spending will be devoted to development of wafer manufacturing processes below 20nm nodes, including 14nm, 10nm and 7nm, as well as advancing 3D IC integration technologies. In addition, TSMC plans to boost monthly capacity at its Songjiang 8-inch fab in Shanghai, China, to 110,000 wafers from the current 49,000 units, Chang revealed. A portion of processes at the facility will also be upgraded to 0.13-micron to enhance its special technology options including automotive and embedded flash, Chang added.

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