April 23, 2001 — Taipei — A decline in demand for wafers has forced Taiwan Semiconductor Manufacturing Company to postpone the completion of two 12-inch wafer plants that had been planned for southern Taiwan.

F.C. Tseng, TSMC’s president, told the Economic Daily News recently that work on the plants will be put on hold until there are clear signs of recovery in the semiconductor industry. Construction is already under way and will likely be finished, according to the reports. However, equipment needed for production to begin will not be installed yet.

Tseng said the is preferable for TSMC to retain cash since the industry is currently “walking in the fog.”

Despite the slowdown, Tseng said the company is not planning on any job cuts at this time. Similarly, there are no plans to cut capital spending, which is expected to exceed $2.2 billion this year.