TSMC Expands Investment in Taiwan with New Milestone for Taichung GigaFab

Taichung, Taiwan, R.O.C. – Dec 9, 2011 – TSMC (TWSE: 2330, NYSE: TSM) today held a groundbreaking ceremony in Taichung’s Central Taiwan Science Park for Phase 3 of its Fab 15 GigaFab, setting a new milestone for the company’s commitment towards continued investment in Taiwan.

TSMC began construction on Fab 15, Phase 1, in July 2010, and completed equipment move-in in mid-2011 with volume production scheduled for early 2012. At the same time, Fab 15, Phase 2 started construction in mid-2011 and is expected to begin volume production next year. Fab 15 Phases 1 and 2 are forecast to generate as much as US$3 billion in revenue per year once they enter volume production, and Phase 3 will also reach a similar scale in the future.

Fab 15 currently employs approximately 1,400 employees, and is expected to create a total of 8,000 high-quality job opportunities, developing talent for Taiwan’s semiconductor industry and bringing more high value-added growth opportunities to TSMC.

The groundbreaking ceremony was led by TSMC Chairman Dr. Morris Chang. “With a strong foundation in Taiwan, TSMC continues to fortify its trinity of strengths: technology leadership, manufacturing excellence, and customer trust,” Chairman Chang said. “We aim to be the most trusted partner for our customers around the world and to form a powerful competitive force in the semiconductor industry with them. What’s more, we hope that our leadership will make Taiwan a pivotal player in global semiconductor industry, and that TSMC continues to be a world-class company that everyone in Taiwan can take pride in. Fab 15, Phase 3 plays an important role in our plans for advanced technology development and capacity expansion, and once again demonstrates TSMC’s ability to satisfy customer demands.”

Fab 15, Phase 3 will be TSMC’s second GigaFabTM equipped for 20nm process technology, and the company’s third “green fab” following Fab 12 and Fab 14. Fab 15, Phase 3 applies numerous pollution prevention and energy conservation methods, including classification of process wastewater into 25 categories, an effective process water recycling rate of 90%, water use reduction of 62%, and 5% less power consumption than earlier facilities. In addition, Fab 15, Phase 3 has a rainwater collection surface of 40,000 square meters, and all collected rainwater is used in landscaping, consuming no water from public utilities. In addition, we aim to create a benchmark in high-quality green buildings with treatment effectiveness of cleanroom exhaust reaching as high as 98%, innovations in recirculation of waste heat, as well as application solar power and LED lighting technology. The construction of Fab 15, Phase 3 will continue to push forward the development of green factories by creating a green environment with comprehensive functionality.

As TSMC continues to expand Fab 15 in the Central Taiwan Science Park, the company will closely monitor industry trends and make decisions for future capacity expansion at Fab 12 in Hsinchu and Fab 14 in Tainan to strengthen its competitiveness and to support its growth.

Fab 15, Phase 3 Background Information:

• Process Technology: 20nm and more advanced
• Capacity: 40,000 300mm (12-inch) wafers per month
• Product Applications: Includes application processors (APs), baseband, graphics processing units (GPUs), central processing units (CPUs), and field programmable gate arrays (FPGAs)