Two interesting pieces of news regarding fabs and foundries today. First, TSMC is planning a $16B mega-fab installation at the Taichung science park in Central Taiwan. The planned investment would be even larger than the expected growth in fab costs through the 10nm node and suggests that TSMC is sending a message to its rivals at Samsung, GlobalFoundries, and to some extent, Intel — the company is willing to spend whatever it takes to regain its lost ground and grow its market share.
TSMC has projected sales of around $7 billion for the first quarter of 2015 and expects to spend between $11.5 to $12 billion on capital expenditures for 2015, as compared to $9.5 billion in 2014. Little information about the new plant
is available at this time, but we can make some educated guesses. Given how long it takes to build a fab (typically 2-3 years from announcement to production), we can safely assume that this new facility would likely come online at 10nm or below. There’s still a small chance that TSMC might use the new facility to do some 450mm wafer production or to launch EUV, but the company hasn’t spoken to either plan. With 450mm wafers reportedly dead for now and EUV still mired in uncertainty, it’s difficult to predict whether either option will be available. If EUV does come online, it’ll likely be at a brand-new facility like this first, and installed as the default manufacturing option rather than retrofitted.