TAIPEI (Taiwan News) — Powerchip Semiconductor Manufacturing Corporation (PSMC) opened its new fab in Miaoli Tongluo Science Park on Thursday (May 2).

According to a PSMC press release, the fab project received over NT$300 billion (US$9.27 billion) in investment and will produce 12-inch wafers. More than 700 executives from the semiconductor industry attended the opening, with high-ranking officials like President Tsai Ing-wen (蔡英文) present, per CNA.

“The construction of Tongluo fab began in March 2021, the challenging moment of the pandemic when all employees and partners were mobilized and collaborated to accelerate the progress for fab construction and equipment installation,” PSMC Chair Frank Huang (黃崇仁) said. “It took three years to complete the fab construction and commence operation.”

“Fortunately PSMC management team has executed a timely decision to mitigate the inflation risk from high construction costs,” the chair added.

Although Tongluo fab will produce legacy 28nm (nanometer) and 55nm chips, Huang said that he expected AI-related opportunities to grow, per Nikkei Asia. He stressed the need for Taiwan to build supply chains that do not rely on China. 

Tsai thanked PSMC for responding to government policies and investing in universities for semiconductor research, reported CNA.

Speaking about AI, Tsai said it will make Taiwan’s semiconductor industry even more important. The president said she looks forward to more government-industry cooperation to maintain Taiwan’s dominant position in semiconductors.