Powerchip Semiconductor Manufacturing Corporation (PSMC) held an inauguration ceremony on May 2nd, 2024 to celebrate the completion of its new Tongluo Fab in the Miaoli Tongluo Science Park. As one of the key players in the semiconductor supply chain, PSMC’s new 12-inch fab project will serve as the major platform to advance its process technology and secure business with large international customers.

President Tsai Ing-wen was invited to the ribbon cutting ceremony which was joined by over 700 VIPs from local and international semiconductor supply chain companies, top government officials, and international trade office representatives; including: President Tsai Ing-wen; Minister of the National Development Council, Kung Ming-hsin; Chairman of the National Science Council, Wu Tsung-chung; Miaoli County Magistrate, Chung Tung-chin; and officials from the American Institute in Taiwan (AIT), India Taipei Association (ITA), Japan-Taiwan Exchange Association, Bureau Français de Taipei; and the Governor of Miyagi Prefecture from Japan.

The Founder and Chairman of PSMC and chairman of Taiwan Advanced Automotive Technology Development Association (TADA), Dr. Frank Huang stated that the construction of Tongluo fab began in March 2021 and took 3 years to complete the construction and commence operations. Challenges from the pandemic did not hinder the construction as all employees and partners were mobilized and collaborated to accelerate the progress for fab construction and equipment installation. 

He further shared that the Tongluo Fab investment has reached NTD 80 billion (approximately USD 2.46 billion) and the difficulties of the project proves that green field semiconductor fabrication investment requires high barriers for project execution, technology deployment and financial capability. Fortunately, PSMC management team has taken a timely decision to mitigate the inflation risk from the high construction costs.

The land area of the Tongluo fab is over 110,000 square meters, including a 28,000 square meter cleanroom in the phase one facility. The facility is scheduled to produce 50,000 12-inch wafers per month under the 55, 40, and 28 nanometer technology nodes. PSMC will construct the second phase of the plant to continue advancing its 2x nanometer technology node.

Dr. Huang also stated that the current geopolitical dynamics has accelerated the shuffling of the global supply chain. The timing of the Tongluo fab production inauguration will fulfill PSMC’s goals for long-term growth and supply chain resilience strategy for international IDMs and IC design companies.