Taiwan approves chipmaker expanding China plant

Taiwan has approved Taiwan Semiconductor Manufacturing's (TSMC) plans to expand its manufacturing plant in China.

TSMC is the world's largest contract chipmaker, and approval was granted by the island nation's Investment Commission under Taiwan's Economic Affairs Ministry, official news website Focus Taiwan reported on Friday.

The commission said: "TSMC's Nanjing expansion plan secured a greenlight because the investment will come from the chipmaker's earnings made from the China plant, instead of from the company's other funding sources, so it is not expected to impact its paid-in capital."

TSMC has its plant in Nanjing, the capital of China's eastern Jiangsu province. One of TSMC's plants in mainland China, its construction was completed in 2017.

The commission said the TSMC has pledged to invest around $22 billion in Taiwan to create more jobs over the next three years.

In a separate statement, TSMC said production at the plant is scheduled to start in the second half of 2022. The monthly capacity of the plant is expected to hit 40,000 units by mid-2023.