TSMC will double its capacity in the next 5 years to more than 3 times times the core

Wang Ruichen, the semiconductor foundry giant, announced a bigger plan yesterday, about 3 times times more than the SMIC's 5-year capacity target, after Smic unveiled a huge capacity plan and investment for the next 5 years.　　At the annual Technical Forum yesterday, Qinyong, deputy general manager of TSMC operations and product development, said that to meet demand, 4 plants would produce a small volume in 2011 years, with an annual output of 20 million (all converted to 8-inch products) expected in 2015. TSMC official data show that 2010, the total annual output can break through 10 million pieces.　　This means that capacity could double in the next 5 years.　　One months ago, the core of the press conference, chairman Jiang to the "First financial daily" revealed the next 5 years capacity target is: 12-inch products can reach 2 million pieces per year.　　In general, according to the number of cutting chips, a 12-inch product is about 2.25 pieces of 8-inch products, that is 2 million pieces of 12-inch production capacity, 4.5 million pieces of 8-inch production capacity. SMIC's 2010 annual earnings show that its existing 8-inch production capacity of nearly 2 million pieces.　　As the future focus on the 12-inch products, a rough calculation, 5 years later, SMIC can reach 6.5 million pieces annually.　　In this way, TSMC's capacity target is almost 3 times times that of SMIC. "Semiconductor generation industry is the size of the economy, and the panel industry is very similar."　　"Isuppli China senior analyst Wenjun said to this newspaper, TSMC capacity has reached 10 million, unexpectedly still want to increase one times, this shows that the future of China's core, Huali microelectronics if not in the fund to get support, want to catch up with it, very difficult. Capacity competition means high investment in equipment. Jiang Shang Zhou has previously told this newspaper that each additional 10,000 pieces of 12-inch product capacity (about 22,500 pieces of 8-inch products), equipment investment needs about 900 million U.S. dollars.　　He said at the time that, on average, the next 5 years, about more than 2 billion dollars a year, a huge gap. Not long ago, CIC injected $250 million trillion into the core, compared to total planning investment, just a drop in the bucket.　　SMIC will continue to introduce investment. TSMC, which occupies more than half of the foundry market, appears in deep pockets. At the beginning of the year, its planned 2011 capital expenditure figure was close to $8 billion trillion, which was lowered to $5.2 billion before long.　　Even so, it is the core of the next 5 years, the average expenditure of more than twice times. This is enough to make it harder for local rivals to see beyond hope. SMIC chief operating Officer Yangsning last year said that in the short run, but the other side also "hit Not Dead" SMIC. Just held a trial-production ceremony of the Hua Li Microelectronics market, said that the foundry market is big enough, Huali has its own survival strategy, especially based on the local, opponents again strong, it is impossible to take all the market.