Taiwan Semiconductor Manufacturing Company (TSMC) officially applied on Monday to build a wafer production plant in Nanjing, China.
TSMC is the world’s largest independent semiconductor foundry. The new plant would be Taiwan’s biggest ever investment in China, with a price tag of US$3 billion. If the Taiwan government approves the plan, production will begin in early 2018, at a capacity of 20,000 chips per month.
Investment Commission Executive Secretary Chang Ming-bin said that once the Industrial Development Bureau receives the application, it will consult with multiple government administrations and industry experts. It will take about two months to decide whether to approve the plan.
Chang said the key concern was protecting Taiwan’s cutting-edge technology.
“The scrutiny will focus on ensuring the new plant’s production process is at least one generation older than the one used in Taiwan, protecting copyrights on key technologies, making sure that TSMC will invest locally in Taiwan and treat their employees well,” said Chang.
As part of the application process, the economics ministry is also requiring TSMC to propose a new plan for investing in Taiwan.