TSMC chairman lobbies government to relax China restrictions

Morris Chang, chairman of Taiwan Semiconductor Manufacturing Company (TSMC), said yesterday that he is lobbying the Taiwan government to permit local chipmakers to process wafers with technologies down to 0.18-micron in China.

The government currently bans chipmakers from setting up plants in China using process technologies more advanced than the 0.25-micron node. It also prohibits firms from setting up 12-inch wafer processing lines in China.

However, China-based firms such as Semiconductor Manufacturing International Corporation (SMIC), Grace Semiconductor Manufacturing Corporation (GSMC) and CSMC Technologies, are beginning to ramp their 0.18-micron capacities.

TSMC is the only Taiwan-based firm with permission to process wafers in China. ProMOS Technologies and Powerchip Semiconductor Corporation (PSC) are reportedly planning to submit their applications to the government.

Article translated by Jack Lu and edited by Michael McManus