UPDATE 1-TSMC says plans $9.4 bln Taiwan plant

* TSMC to invest $9.4 bln in new Taiwan plant, add 8,000 jobs

* Plant to use 40-, 28-nanometre technologies in first phase

* Total 12-inch wafer output to rise to 240,000/mth by yr-end

* TSMC shares slip 0.3 pct, trailing broader market
(Adds comments, details, shares prices)

TAICHUNG, Taiwan, July 16 (BestGrowthStock) – Taiwan Semiconductor
Manufacturing Co (2330.TW: ), the world’s top contract chipmaker,
said it will invest more than T$300 billion ($9.4 billion) and
add 8,000 jobs in a new plant in Taiwan over the next few years
to tap global chip industry growth.

The company’s third 12-inch wafer fabrication facility would
use advanced 40- and 28-nanometre technologies in phase one, TSMC
(TSM.N: ) Chairman and Chief Executive Morris Chang said on Friday.

“This marks the beginning of a new growth era,” Chang said at
the ground-breaking ceremony for the new plant in Taichung,
central Taiwan.

Although there were worries about a supply glut in the chip
sector, TSMC’s investment would not add to that concern, some
fund managers said.

“There has been a flood of chips using mature technology out
there, but those to be made at this new plant are still in strong
demand,” said Chang Chi-sheng, who manages T$9.5 billion for
Uni-President Asset Management. “TSMC has long been the industry
leader in technology. An increase of advanced process output will
fuel demand among clients.”

Major TSMC clients included Broadcom Corp (BRCM.O: ) and Nvidia
Corp (NVDA.O: ).

The new project comes days after Intel Corp (INTC.O: ), the
world’s largest chipmaker and a dominant supplier of PC chips,
posted margin and revenue forecasts that blew past Wall Street
expectations. [ID:nN13261502]

TSMC reported record sales for the second quarter on stronger
demand for PCs and electronic devices, with the company on track
to book a record profit this year. It is set to announce full
quarterly results and offer guidance on its business outlook in
late July. [ID:nTOE668023]

Despite worries over the debt crisis in the euro zone, Chang
has said the global chip maker should remain in good shape in the
second half as global chip sales were expected grow about 30
percent this year.

TSMC’s new facility was set to begin mass production in the
first phase in the March quarter of 2012, said Chang

The company’s total monthly output of 12-inch wafers would
rise to 240,000 units by end of this year from 200,000, according
to a TSMC statement.

TSMC also said it planned to build a solar cell R&D center in
the new facility as part of a diversification initiative.

(For an analysis on Taiwan technology companies expanding
into the solar sector, see [ID:nTOE65O03Q].)

By 0420 GMT, TSMC shares were down 0.33 percent, while the
broader market (.TWII: ) was flat.
(US$1=T$32.1)
(Reporting by Argin Chang and Faith Hung; Editing by Chris
Lewis)

UPDATE 1-TSMC says plans $9.4 bln Taiwan plant