Announces capital expenditures of $7.8bn to support expansion
Semiconductor foundry TSMC plans to expand capacity 20% this year.
The company announced capital expenditures of $7.8bn in 2011 to support expansion in manufacturing capacity.
TSMC CEO Morris Chang said at present, the company produces 11.3 million eight-inch equivalent wafers among the factories that TSMC owns or manages.
Chang added the company will also double capital expenditures for research and development to $700m.
The company said 47% of its semiconductor revenue in the fourth quarter 2010 came from communication equipment such as mobile phone handsets.
Revenue from computers declined 6% in the same quarter. Sales grew by about 42% in the full year 2010.
Tablets and other PCs are driving TSMC’s efforts this year to expand capacity, Chang said.
Microsoft’s expected use of Windows 8 on ARM-built processors should create particular opportunities for TSMC’s mobile computing clients, Chang said.