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Published on : Dec 07, 2015

As an increasing number of companies in the China chip industry enter into partnership, Taiwan Semiconductor Manufacturing said on Monday that it intended to take a different route. It revealed its plan of setting up a manufacturing facility without seeking help from any local partners. 

They designed this move cautiously to safeguard its technology, while capitalizing on opportunities doing rounds in a China market brimming with inexpensive smartphone makers. The company is chalking its course between maintaining its facilities of complex chip production outside china, however extending its technology to partners through licensing. 

Taiwan Semiconductor in an announcement made on Monday said that it has already submitted an application to the Ministry of Economic Affairs in Taiwan to fund in an advanced chip production factory, located in Nanjing, China. According to a company spokesperson, the total value of the fund invested is likely to be around US$3 bn. He also said that the company is looking forward to enhance its savings by using equipment from its Taiwan facilities and by capitalizing on Chinese subsidies. 

Not denying reports about its concern regarding the technology of advanced chip protection being leaked to competitors in China, in a separate statement Taiwan Semiconductor said that by the time the factory in China is up and running, facility in Taiwan would be manufacturing a generation of more sophisticated chips. 

The company further said that its decisions focus on comprehensively protecting information at its proprietary database. While referring to its fabrication plant, the company further emphasized on the fact that it would in near future enjoy the complete ownership of the fab in China, which again will help the company protect its rights of intellectual property. 

Thus, the approach adopted by Taiwan Semiconductor, stands in contrast of the popular trend sweeping the feet off its partners relating to partnership with peers.