Hsinchu, Taiwan – Taiwan Semiconductor Manufacturing Co. (TSMC) said it’s mulling a district in Shanghai as one of the possible locations for its first wafer fab in China.
TSMC Chairman Morris Chang said Songjiang – located in the southwest of Shanghai – is on a list of possible mainland sites that the chip foundry has drawn up, reported Dow Jones.
The area includes the Shanghai Songjiang Industrial Zone, where several foreign companies have already set up operations.
TSMC previously said it may submit a formal application to the Taiwan government in July or August for approval to invest in China.
Analysts say the areas TSMC is considering for the site of its first China plant are likely all around or near Shanghai.
“They’re definitely going to go somewhere in the greater Shanghai area since a number of key links in the semiconductor supply chain, including chip packaging partners and end customers, are based there,” said Dorothy Lai, a semiconductor analyst at Gartner Dataquest in Hong Kong.
However, TSMC probably won’t build the plant in Shanghai ‘s Pudong district given that three rivals already have plants there and it may not get the same government incentives as it would in other areas around Shanghai, she noted.