March 22, 2001 — TAIWAN — Taiwan Semiconductor Manufacturing Corp. is gearing up for another cutback in its capital expenditures, according to published reports.

The Columbian, based in Vancouver, Wash., today reported that TSMC is projecting $2.2 billion in capital spending for 2001. This is the second time TSMC has revised its forecast this year. In February, the semiconductor firm cut its capital budget to $2.7 billion, down from the $3.7 billion it has originally earmarked.

The cuts are largely due to a downturn in the microchip industry.

According to officials, the cuts will not affect plans to expand production of TSMC’s plants which use 12-inch wafers. Those plants generally yield more microchips than the 8-inch wafers.

“The cuts are primarily on the 8-inch side,” Harvey Chang, TSMC’s chief financial officer told Reuters news service.