TSMC to spend $500m on US subsidiary

Ups stake in Washington chip factory

Taiwan Semiconductor Manufacturing Company (TSMC) is to spend up to $500 million on a US subsidiary.

The chip subcontractor company today said its board of directors had cleared the plan to buy out almost all the shares it does not already own in WaferTech LLC.

The chip factory in Camas, Washington, is currently a joint venture with US chipmakers Analog Devices, Altera Corp and Silicon Solution. TSMC plans to up its stake in WaferTech from 67 per cent to 99 per cent, and has budgeted $6 per share for the move.

The chip outsourcing sector has seen speedier growth than the rest of the semiconductor industry as companies take advantage of the service in a bid to cut production costs. ®

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