TSMC set to invest $1billion in Europe in 2011

The investment represents a continuing growth in the importance of Europe to TSMC's operations. "Europe is bringing innovation," she said, "and becoming special." Apart from the revenue generated by European fabless semiconductor companies and work for companies such as NXP and Infineon, a substantial part of TSMC's R&D effort is based in Europe. In particular, capex investment will be made in equipment builder ASML and in supporting advanced technology work being undertaken at Belgian research institute imec. Europe is currently contributing more than 10% of TSMC's revenues, with a focus on the automotive and wireless sectors, as well as industrial. Much of this business is targeted at what Marced called trailing technologies. An example of the importance of Europe to TSMC came recently with the announcement by Infineon that TSMC will make embedded flash mcus on its 65nm process for use in automotive applications. Production is expected to begin towards the end of 2011, due to the automotive qualification process. Meanwhile, work on developing its 28nm technology is progressing well and Marced noted it was ahead of 40nm at the same point. "We have good engagement at 28nm, with 71 tape outs planned for the near future." Nevertheless, while she recognises that 28nm will be 'difficult', TSMC anticipates that 2% of its 2011 revenue will come from 28nm devices. Currently, TSMC is looking for 2010 revenues to exceed $14bn, generated from 11.3million 8in equivalent wafers. Revenues next year could grow by a further 20%. Recognising the recent debate about yield on its 40nm process, Marced said everything is getting more difficult. "But our 40nm business has grown by 500%," she said, "and represents 17% of revenue."