LONDON Foundry chipmaker Taiwan Semiconductor Manufacturing Co. Ltd. (Hsinchu, Taiwan) has said it will invest $5 million, or about NT$160 million, in a venture capital company based in Shanghai, according to a Focus Taiwan report.
Taiwan's Investment Commission has approved the investment in the company, in which TSMC will only take a minor stake. The venture capital firm will be capitalized at 500 million yuan (about $75 million).
"The new venture capital firm will focus on China's IC design business, which has enjoyed high growth.The investment is expected to bring a good return to TSMC," the report quoted an unnamed TSMC executive as saying. The TSMC investment is being made through TSMC Partners. The VC company will not invest in semiconductor manufacturing in China, the report said.