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TSMC will spend more to sort out 28-nanometer

by on19 April 2012

Increasing capital expenditure

Chipmaker TSMC said that it will increase its capital expenditure in a bid to get enough gear to make 28-nanometer chips.

A number of its customers are furious that the outfit did not have enough machines to handle the 28 nm process. TSMC said that it will be spending more than US$7 billion in an effort to satisfy customers’ strong demand for its advanced process. That is an increase of about 17 percent on an estimate of US$6 billion that TSMC made three months ago.

It might be too late already Nvidia and Qualcomm have said that they are looking for a second source, such as south Korea’s Samsung,  UMC and even GlobalFoundries. TSMC chairman and chief executive Morris Chang told a technology forum in San Jose, California that the company had some difficulties with 28-nanometer chips, but those difficulties had to do with not having enough capacity, not the yields.

The company expects to complete 132 tape-outs of 28-nanometer chips for customers this year after finishing 36 at the end of last year, Chang said in January.

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