TSMC Board Approves a NTD$ 122.4 Billion Capex Budget for Advanced Manufacturing Processes

3 Aug

Wafer manufacturer TSMC announced on July 2nd that its board of directors has approved the budget of NTD$ 122.4 billion designated for expanding capacities of advanced manufacturing processes and for converting some of its logic IC capacities to special manufacturing processes.

TSMC has strived for the development of advanced manufacturing processes in the past few years. At least three 10 nm OEM plans have been completed, while many more are coming by the end of 2016, noted Mark Liu, Co-CEO of TSMC in the institutional investors’ conference in July. Its progress will be reflected in the financial statement from the first quarter of 2017, Liu added.

Moreover, as the more advanced 7 nm process operation will be commissioned in 2018, TSMC has augmented the total capex of 2016 from the previously estimated $9.0-10.0 billion to $9.5-10.5 billion in response to strong market demand.

The capex budget totaling NTD$ 122.4 billion approved by the board on the 2ndwill be used not only for expanding the company’s advanced process capacities but also for converting some of its logic IC capacities to special manufacturing processes. Furthermore, this NTD$ 122.4 billion also contains the R&D capex for 2016Q4 and recurring capex.

Apart from the Capex budget increment, the board has also made the decision to acquire an 86.9% share of VisEra in net asset value from VisEra Holding and 6.9% of the shares of Xintec by market price. Visa Holding Company will be disassembled and combined into TSMC Partners. The deal will enable TSMC to directly hold 86.9% shares of VisEra and 41.3% shares of Xintec.

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