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TSMC trims equipment spend by one fifth

Blames the chip slump

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The Taiwan Semiconductor Manufacturing Company has cut this year's plant budget by half a billion US dollars, the firm's CFO let slip this weekend.

The decision, prompted by the collapse in the world semiconductor market, will see TSMC cut its proposed 2001 capital spend from $2.7 billion to $2.2 billion - a reduction of nearly 23 per cent.

TSMC will clearly still spend a significant sum on new equipment, primarily as it shifts toward 0.13 micron processes and 12in wafers. The company's Fab 12 plant is due to begin 12in (300mm) wafer production during Q4.

The cut will come by canning programmes designed to expand 8in (200mm) wafer production. ®

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