The moves are expected to help maintain TSMC's leadership position in the foundry business--if not putting it equal to or slightly ahead of the world's integrated device manufacturers (IDMs), in terms of overall manufacturing capabilities, said F.C. Tseng, president of the company in an interview with SBN today.

For the most part, though, TSMC is racing against its major rival in the silicon foundry business--Taiwan's United Microelectronics Corp. (UMC)--in terms of offering the most advanced process technologies and capabilities in the marketplace.

UMC has recently announced bold plans in both the 300-mm wafer and 0.13-micron process technology arenas, but TSMC's president insisted that his company is ahead in the race. "Our customers tell us that we're ahead of our competitors right now," Tseng told SBN in the interview at the company's headquarters.

Officials at UMC in Hsinchu could not be reached for comment.

Still, business is booming for all major foundries, including TSMC, UMC, Singapore's Chartered Semiconductor Manufacturing Pte. Ltd., and others. In fact, TSMC recently said it is fully-booked until at least the end of 2001 (see Aug. 29 story).

"Capacity is tight right now," Tseng said. "For 2001, business is pretty firm."

On the technology front, TSMC is aggressively ramping up its 0.13-micron wafer-processing capabilities much faster than previously expected. "Our 'risk' production for 0.13-micron process technology is scheduled for this October," Tseng said. "We are about a quarter ahead of our original plan." The term "risk production" refers to a process of qualifying foundry wafers for customer designs, Tseng explained.

TSMC plans to ship in volumes its first foundry wafers, processed with its 0.13-micron technology in the first quarter of 2001, which is also ahead of schedule, said Tseng.

"A lot of chip makers claim they have 0.13-micron technology, but the question is if anybody will use it," he said. "We have some demand from our high-end customers."

The TSMC president also said the company is on track to ship Taiwan's first 300-mm wafers, as originally planned. "We will be the first in Taiwan to have a 300-mm fab,'' Tseng said. "We will be among the first group of chip makers in the world with a 300-mm fab."

The world's largest silicon foundry company plans to ship the first 300-mm wafers from a pilot line inside its new Fab 6 chip-processing plant in Tainan, located about 150 miles south of Hsinchu. The Fab 6 facility houses TSMC's largest 200-mm frontend production line in addition to the 300-mm pilot line (see March 30 story). The facility is in the process of installing the final pieces of equipment, and TSMC expects to have the first wafers out in December, Tseng said.

The company is building two 300-mm production fabs--one in Hsinchu, called Fab 12, and another, called Fab 14, located across the street from Fab 6 in Tainan. TSMC expects to begin volume fabrication of devices for foundry customers in production fabs next year.