TSMC has announced plans to construct its third 300mm fab in the Central Taiwan Science Park.

TSMC Chairman Morris Chang claims that the foundry is struggling to meet demand in advanced manufacturing processes, sometimes falling 30 to 40 percent short of demand. Hence, the new plant should alleviate the shortfall and allow TSMC to ship more 28nm chips. The fab will cost around $3.1 billion and construction should start in mid 2010.

In addition to the new plant, TSMC will expand its current production facilities, mainly focusing on the 40nm process favored by GPU makers. TSMC expects the chip industry will see 36 percent growth this year.

More here.