Taiwan Semiconductor Manufacturing Company (TSMC) will announce its revised capex budget for 2012 at its upcoming investors meeting on April 26, according to company chairman and CEO Morris Chang. The foundry decided to increase its capex target for the year, which was previously set at US$6 billion.

The higher spending is to expand capacity for 28nm processes, which have experienced stronger-than-expected demand, and also to start volume production using 20nm process technology ahead of schedule, said Chang.

TSMC has seen the visibility of its orders extended to three to four months, which could point to brisk market conditions in the second quarter, Chang indicated. Customers demand more capacity for advanced processes than last year, Chang said.

In addition to building new capacity for 28nm processes, TSMC will move its 20nm technology to volume production as early as 2013, Chang noted.

Chang made the remarks during today's groundbreaking ceremony for Phase 5 of its Fab 14 at the Southern Taiwan Science Park (STSP).

Market sources speculate that TSMC would raise its 2012 capex to about US$6.8 billion.

Source:Digitimes