TSMC prepares for capacity increase

Expecting a possible increase in foundry capacity at the end of this year, Taiwan Semiconductor Manufacturing Co. (TSMC) plans to take a 33 percent stake in competitor Acer Semiconductor Manufacturing Inc. (ASMI).

ASMI is a foundry subsidiary of PC maker Acer and manufactures chips for IBM Microelectronics and Fujitsu. Beginning in Q4, TSMC plans to transfer 15,000 wafers per month to ASMI, as well as ship new semiconductor equipment to ASMI's fab.

Additionally, TSMC will outsource 8" wafers to Taiwan DRAM maker, Vanguard International Semiconductor. Vanguard is upgrading its equipment from .5 to .35 micron technology to accomodate the change.

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