Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the top microchip maker on the island province, opened an 8-inch wafer plant in the Songjiang District of Shanghai yesterday, according to the district government. (June 28）

A contract ceremony yesterday marked the official launch of the US$898 million wafer production project, for which it took TSMC nearly a year to get a go-ahead both in Taiwan and Shanghai.

With a registered capital of US$371 million, the plant will produce more than 40,000 8-inch chips each year.

Headquartered in Hsin-Chu, Taiwan, and founded in 1987, TSMC has developed into the largest dedicated semiconductor foundry in the world with an annual sales volume of US$4.62 billion, accounting for more than 40 percent of the world's total.

Its investment plan in Shanghai started last September and got approval from the Taiwan authority and local government in February this year.

The project launched yesterday is the first phase of TSMC's overall plan. The US$898 million direct investment will be dedicated wholly to the first phase. If all goes well, the overall project will be implemented as planned, which would bring more downstream Taiwan companies linked to TSMC to Shanghai.

Editor:Li Guixiang.         Source: Shanghai Daily.