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TSMC to raise 2006 capex

Optimistic about the short term?

TSMC, the world's largest chip foundry, has added its voice to the chorus of claims that the short-term prognosis for the world semiconductor business is positive.

The foundry's vote of confidence was signalled by the announcement of a plan to raise capital spending next year.

TSMC spent around $2.32bn in 2004 on new plant, and has said it will spend $2.5-2.7bn this year. Speaking to reporters yesterday, TSMC CIO Stephen T Tso said the company would lift capex still further during 2006, according to a DigiTimes report.

Last week, market watcher Semico echoed a bullish forecast from Advanced Forecasting and said it believes 2006 will deliver strong revenue growth to the chip industry. ®

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