LONDON – Foundry chipmaker Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) is going to cut its capital spending in 2012 by 19 percent compared with 2011, to $6 billion, according to a Taiwan Economic News report which cited company executives as sources.
In 2011 TSMC (Hsinchu, Taiwan) the company plans to spend $7.4 billion, up 25 percent on capex spending of $5.9 billion in 2010, the report said.
The result of this spending is set to be a steady expansion of TSMC's manufacturing capacity from about 11.3 million wafers in 2010, to about 13.5 million wafers in 2011 and between 16 and 17 million wafers in 2012, the report charted. These numbers are normalized to 200-mm diameter wafer equivalents to take account the production area on wafers of different sizes, predominantly 300-mm and 200-mm diameter.
TSMC's production at the 65-nm process node is running into oversupply due to weak demand but demand exceeds supply for 28-nm silicon, the report said. The company is expected to run initial small volumes on the 28-nm process in the fourth quarter of 2011, the report said.
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