Taiwan Semiconductor Manufacturing Company (TSMC) will conduct R&D for 14nm process technology starting 2012, and expects to begin volume production on the node in 2015, according to Shang-yi Chiang, company senior VP of R&D.

TSMC will use 18-inch wafers to process 14nm chips, said Chiang, adding that manufacturing with larger wafers helps increase its ability to produce at a lower cost.

The transition to larger, 18-inch-sized wafers will also allow TSMC to build fewer fabs, meaning that labor and land costs can be reduced, Chiang pointed out. In its ongoing advanced technology development, TSMC is actually facing a shortage of engineers rather than technical issues, Chiang added.

TSMC previously revealed that trial production on 18-inch wafers would take place between 2013 and 2014 followed by volume production in 2015-2016. The company will initially locate its 18-inch wafer lines at its 12-inch fabs, and has not yet disclosed concrete plans for constructing an 18-inch fab.

Industry observers have indicated that fab tool suppliers are still unwilling to devote their resources to supporting just a limited number of players who can afford the costly investment necessary to build 18-inch fabs. The equipment suppliers are already capable of making products for 18-inch facilities, but are discouraged to do so concerning economies of scale.

In additional news, Chiang claimed that TSMC has received enough orders to fully utilize its 28nm production capacity. Its 28nm process technology will be available for mass production in early 2012, Chiang said.