Restricted by China government regulations, as well as rivals Samsung and Intel have set up 12-inch fab in the China, pusing TSMC to consider to increase production capacity of 28 nm in China.But this Taiwan breeded company still keep a low profile, not yet to make any move.

In addition to China's official regulations, the Taiwanese government also have restrictions to limit investment of Taiwanese fab-related company in China. According to the Taiwan’s regulations, only allow Taiwan company to merger or hold equity of existing companies in China, set up a new factory is prohibited.

Ministry of Economic Affairs Investment Commission said that, according to current regulations, TSMC have to obey these two conditions, the new plant is not allowed.

So far, UMC and TSMC have only to apply 8-inch fab, 12-inches have not.

Analysts said that the raising demands stimulated by Internet of Things and wearable devices in China do not require the most advanced manufacturing process, expansion capacity of 28nm process will be a appropriate plan for TSMC to meet the customers’ need in China.