TSMC, which already has an 8-inch fab near near Shanghai. had to do some seriously lobbying before the Taiwanese government would allow a higher tech 12-inch plant to be constructed in China.TSMC is one of Taiwan's top tech companies. TSMC had urged authorities to allow 12-inch facilities, which use more advanced technology processes than the 8-inch plants. Its arguement was that such plants had to be wholly owned out of concern for intellectual property protection.

Chairman Morris Chang has given out some details on the project saying that a 12-inch fab and its new design service centre will be established in Nanjing.

“We aim to provide closer support to customers as well as expand our business opportunities in China in step with the rapid growth of the Chinese semiconductor market over the last several years," he said

 

When completed, the new plant will make 20,000 12-inch wafers per month. Production will begin in the second half of 2018.