March 31, 2006 – Taiwan Semiconductor Manufacturing Co. is mulling whether to help relieve currently strained foundry capacity for some older process technologies (0.15-0.18-micron) by acquiring another 200mm foundry, according to the Taiwan Economic News.

Y.W. Sun, director of TSMC’s investor relation unit, was quoted as acknowledging that the company already is sending orders to partners including PowerChip Semiconductor and Vanguard Semiconductor International Corp. (in which TSMC has a 30% stake).

The report noted the strategy has rankled some American institutional investors, who have suggested diverting excessive orders to external chipmakers should have been a last resort, after trying to buy a used facility or finding ways to use up other internal capacity.