The planned capacity of the facility is 20,000 12-inch wafers per month , and would be scheduled to begin volume production of 16nm process technology in the second half of 2018. The design service center is aimed at establishing TSMC’s design ecosystem in China. TSMC will commence the investment project upon receiving the approval from the Investment Commission.

“In view of the rapid growth of the Chinese semiconductor market, we have decided to establish a 12-inch wafer fab and a design service center in China to provide closer support to our customers there and to further expand our business opportunities,” said TSMC Chairman Dr. Morris Chang.