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TSMC Will Not Shift Chip Production To Mainland China Clarifies Taiwanese Ministry

By Ramish Zafar

Apr 23, 2021 12:49 EDT

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Water tankers exit TSMC's fab in Taiwan. Image: CNA

Taiwan's Ministry of Economic Affairs has denied rumors that the Taiwan Semiconductor Manufacturing Company (TSMC) plans to shift some of its chip manufacturing capacity to China. The rumors surfaced earlier this week as some speculated that TSMC would shift to its facility in Nanjing, China, as it faces water and electricity shortages in Taiwan. This alleged shift, now denied by the Taiwanese government, would involve the capacity relocation of 12,000 wafers for mature chipmaking processes such as the 28nm chip node.

TSMC Refuses To Comment On Rumors Of Capacity Shift To China As Per Company Policy

According to the Taiwanese Ministry, TSMC has long-term, in-depth investment plans for Taiwan, and the company has no plans to relocate any of its existing chipmaking capacity to China due to power or water constraints. The island has been facing a historic drought this year as it anxiously awaits typhoons and a power outage in the Tainan sector disrupted TSMC's operations earlier this month, with millions of dollars of loss expected as a result. The fab has also started to procure groundwater and water tankers to ensure its production is not affected by the drought.

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The denial comes as Taiwanese officials clarified the matter directly from TSMC. In their statements, they also stressed that the fab's investments in the latest chip manufacturing technologies are in Taiwan. TSMC is building a chip fabrication plant in the island's Tainan sector, and this plant will build chips on the leading-edge 3nm process node. Risk production in the facility is slated for later this year and mass production for 2022.

They also stated that 90% of TSMC's chip manufacturing capacity is located in Taiwan, and capacity expansion will further mature its chipmaking ecosystem. The Ministry is also planning to develop power and water infrastructure in advance, as it anticipates TSMC and the industry's future needs.

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