TSMC begins construction of new $9.3b foundry, wants to sate our constant hunger for chips
By Vlad Savov 
posted July 17th 2010 10:17AM
posted July 17th 2010 10:17AM
TSMC Begins Construction on GigafabTM In Central Taiwan
Issued by: TSMC
Issued on: 2010/07/16
Taichung, Taiwan, R.O.C. – July 16, 2010 –TSMC (TWSE: 2330, NYSE: TSM) today held a groundbreaking ceremony in Taichung's Central Taiwan Science Park for Fab 15, TSMC's third 12-inch (300mm) GigafabTM and an important milestone in the company's pledge to expand investment in Taiwan.
The groundbreaking ceremony was conducted by TSMC Chairman and CEO Dr. Morris Chang. "Science Parks have played a critical role in the development of Taiwan's high-tech industry. They have also provided important support to TSMC as we grew to become a leading global semiconductor company with its roots in Taiwan," Dr. Chang said. "Over the past two decades, TSMC has flourished in the Hsinchu and Tainan science parks, and our groundbreaking for Fab 15 today sets the foundation for TSMC to reach new heights."
"TSMC has worked unceasingly to improve its technology leadership, manufacturing excellence, and customer partnership to join together with our fabless and IDM customers to forge a powerful competitive force in the semiconductor industry. This groundbreaking for Fab 15 in the Central Taiwan Science Park shows our commitment to providing our customers with advanced technology and satisfying their capacity needs. And as capacity in Fab 15 grows, it will create 8,000 high-quality job opportunities, demonstrating TSMC's dedication to corporate social responsibility," Dr. Chang added.
Fab 15 will be TSMC's third GigafabTM, or fab with capacity of more than 100,000 12-inch wafers per month, and will also be TSMC's second GigafabTM equipped for 28nm technology. Construction will be divided into four phases, and total investment over the next several years is expected to exceed NT$300 billion. TSMC is scheduled to begin equipment move-in for the Phase 1 facility in June 2011, with volume production of 40nm and 28nm technology products for customers in the first quarter of 2012. More advanced process nodes will be introduced as TSMC's technology development continues to advance.
In addition, to meet strong customer demand as we build Fab 15, TSMC will continue to expand capacity at Fab 12 in Hsinchu and Fab 14 in Tainan. Combined capacity of Fab 12 and Fab 14 currently exceeds 200,000 12-inch wafers per month, and is scheduled to exceed 240,000 12-inch wafers per month by the end of this year, underscoring our commitment to providing steadfast support to our customers.
Fab 15 will be TSMC's next "green fab" following Fab 12 and Fab 14, incorporating green concepts in energy conservation and pollution control in its design, including a process water conservation rate of 85%, reclamation of rainwater, recirculation and reuse of general exhaust heat, and development of solar power generation and LED lighting applications. TSMC's goal is to reach zero emissions of greenhouse gases.
Fab 15 Background Information
- Total area of site: 18.4 hectares
- Type of project: TSMC's third 12-inch GigafabTM with two fab buildings and one office building.
- Building area: 430,000 square meters
- Clean room area: 104,000 square meters (approximately 14 soccer fields)
@tekdemon
I am not saying we don't... and TSMC is obviously a Taiwanese company, so of course I don't "expect" them to build here in the US, but I am looking at it that more and more of these type of industries that used to be almost exclusively US-based and used to represent the high-paying jobs that would be employing Americas into the future, are now more and more based elsewhere.
@appsman
Well, there's no reason there shouldn't be major tech companies in other countries apart from the US and Europe. This is a Taiwanese company so not really surprising they want to build a plant in Taiwan. And given that the devices that are made WITH these chips are going to be almost all put together in that area of the world, it makes (slight) sense to have the chips produced nearer.
That aside, I'm curious about the economics - I get that it's automated and doesn't have high labour costs (compared to the cost of the finished product), but where did that 9.3 billion on building it get spent - is *that* part labour-intensive? I.e. would it have been a 15 billion fab if they'd built it in a country with higher labour costs, even if it ends up costing the same to run?
Looks like there will be a lot more Fermi chips now.
@MManLA
According to the Press Release the factory won't start volume production before Q1 2012, so I hope for nVidia that they will have something newer than Fermi to produce by then. After all Fermi is not likely to stay at the top for 1½ year. Especially with AMD responding to the Fermi threats with the ATI Radeon 6xxx Series that, according to a slip of the tongue from Kenny Chow at HIS, is to be announced later this year around Q4 2010(some say October, but no clear sources on that rumor).
Another thing that will be interesting to see is how nVidia will do in the role as TSMCs guinea pig, after all ATi have usually been the ones first on a new production process, but with 28 nm they're likely to go to Global Foundries.
Seriously... Vlad you consider the environment as trivial.... I hope you were being sarcastic... =/
@jiffster
...methinks your sarcasm detector is broken...
...or maybe mine is...
To pay back $10 billion in 10 years (with interest a 30 year mortgage would mean paying back 20 billion in 30 years) .. it would need $1 billion in profit per year. That means $100 million a month. Meaning each wafer would have to produce a profit of $1000 to repay capital costs. On top of that is $2500 energy and labor costs. So each wafer will cost $3500 .. how many chips per wafer? I reckon a few hundred depending what chip. Not bad, they can manufacture at about $20 per chip or less .. most likely $10 per chip when they hit 28 nano. This could really bring about highly capable sub $100 smartphones by 2014.
@JS You came to that conclusion based on the cost of the foundry and the time it would take to pay it back?
Either you made a few jumps in logic or you are much smarter than me.
@JS Well done Sir. May I recommend you for some job at FT or WSJ? :)
@JS
At a conference I once saw an Intel wafer. They said it alone was worth $120k.
Hmm.
Too bad we cannot get something like this built in the U.S. The jobs continue to bleed out and we will never be the same country that we used to be.
@(Unverified)
Info from http://www.globalfoundries.com/manufacturing/300mm.aspx
Fab 8 - Saratoga County, NY
Building on the history of developing award-winning semiconductor manufacturing facilities around the world, GLOBALFOUNDRIES is building the most advanced 300mm wafer fab in the world at the Luther Forest Technology Campus in Saratoga County, New York. Construction of the new fab began in July 2009 and is the largest commercial economic development project in the USA.
Maximum Full Capacity: 60,000 300mm wafers/month
(More than 135,000 200mm wafers/month equivalent)
Technology: 28nm and below
I realize that it's only around half the production capacity, but it's something like the TSMC factory.
@(Unverified) : What are you talking about? This will be only TMSC's third 300mm fab. Intel has 3 within walking distance of my apartment.
@(Unverified) That photo is from a fab in the US. It's Micron's F2 in Lehi, Utah. Its also know as IMFT as is a joint venture between micron and intel. Its a state-of-the-art 300 mm fab running state of the art FLASH chips. NOBODY builds a FLASH chip that has smaller transistors. I could tell you more, but I would get fired....
Watch out, Frito-Lay.
@Zhukov
lol
Yeah and those chips will be in every conceivable cheap ass tech you can find.
Any guesses (without looking it up) what TSMC stands for? Mine is Totally Sweet MicroChips.
@Shunnabunich Taiwan Semiconductor Manufacturing Company Limited. It's TSM on the NYSE.
@chemem That's OK, I'll go with mine. I like it better.
Yet another few billion $ that weren't invested in the US... but hey we've got plenty of jobs for paper pushers and divorce attorneys and court appointed therapists!
It's 2010, I thought brand new $9.3B plant would go for 450 mm wafer
What's with the Ninja in the middle of the room?
"...8,000 new skilled jobs in the area..."
To be filled by skilled humans making unskilled wages. Seriously unskilled wages.
@muchdrama PhD.s gets you about $7000/year over there. Robery, eh?
I love this pictures of chip making facilities, they always look so sci-fi to me!