Recently, Powerchip Semiconductor Manufacturing Corporation (PSMC), has inaugurated its 12-inch fab project the Tongluo Fab. The Tongluo Fab is located at the Miaoli Tongluo Science Park. Specifically, it will serve as the major platform to advance PSMC’s process technology and secure business with large international customers.

This project involves total investments of more than NT$300 billion (US$182 billion). The company has completed the first batch of equipment installation and started trial production.

“The construction of Tongluo fab began in March 2021. This was a challenging moment of the pandemic when all employees and partners were mobilized and collaborated to accelerate the progress for fab construction and equipment installation. It took three years to complete the fab construction and commence operation. The investment of Tongluo Fab has reached NT$80 billion (US$49 billion) as of today,” PSMC chairman Dr. Frank Huang said.

The difficulty of this project proves the fact that green field semiconductor fabrication investment requires high barriers for project execution, technology deployment, and financial capability. Fortunately, the PSMC management team has executed a timely decision to mitigate the inflation risk from high construction cost according to Huang.

The land area of Tongluo fab has exceeded 110,000sqm, which includes a 28,000sqm cleanroom in phase one facility. The fab capacity is scheduled at 50,000 12-inch wafers per month under 55, 40, and 28 nanometer technology nodes.

The company can still construct a second phase of the plant at the Tongluo site. This way, it can continue advancing its 2x nanometer technology node.

Also, Dr. Huang mentioned during the opening ceromony that geopolitical dynamics have accelerated the reshuffling of global supply chain. Amid this, the timing of Tongluo fab production commencement will strategically fulfill the ambition for PSMC long-term growth. Also, it will accomplish supply chain resilience strategy for international IDMs and IC design companies.

During the grand opening ceremony, more than 700 executives from local and international semiconductor supply chain companies, top government officials and overseas representatives attended the event. Among them are President Tsai Ing-wen, Kung Ming-hsin, Minister of the National Development Council, Wu Tsung-chung, Chairman of the National Science Council, Chung Tung-chin, Miaoli County Magistrate, and officials from the American Institute in Taiwan, India Taipei Association, Japan-Taiwan Exchange Association, Bureau Français de Taipei and the Governor of Miyagi Prefecture from Japan.

-21 May 2024-