The board of directors of Taiwan Semiconductor Manufacturing Company (TSMC) has approved plans to allocate US$1.65 billion, including US$210 million for construction of a new chip plant, to expand capacity in 2010. The budget will make up more than one-third of the foundry's projected capex for 2010.

TSMC said the board approved a budget of about US$1.05 billion to expand advanced process capacity at Fab 12 and Fab 14, and another US$385 million to expand and upgrade eight-inch wafer fab capacity. The plan to build its third 12-inch fab - Fab 15 - at the Central Taiwan Science Park (CTSP) with US$210 million also received the nod from the board.

TSMC has set a capex budget of US$4.8 billion for 2010, compared to US$2.671 billion spent last year.

TSMC's total installed capacity is expected to top 10 million 8-inch equivalent wafers in 2010, with 12-inch fabs likely to contribute 50% to the total amount, according to market watchers. In 2009, TSMC's managed capacity totaled 9.955 million 8-inch equivalent wafers, of which 41.5% came from advanced process capacity at its 12-inch fabs.