TSMC, others start work on $14.7 billion chip complex

TAIPEI (Reuters) - Top contract chip maker TSMC (2330.TW) and two other Taiwan chip makers began work on Tuesday on new plants for a T$450 billion ($14.7 billion) complex that TSMC said is part of a long-term commitment to investing in the island.

Taiwan Semiconductor Manufacturing Co Ltd's (TSMC) (TSM.N) facility at the Hsinchu Science Park will include an advanced 12-inch wafer plant to make chips for computers and a wide range of consumer gadgets.

"We will have both R&D and manufacturing in the new plants," said J.H. Tzeng, a TSMC spokesman, although he declined to give his own company's investment figure.

The Hsinchu Science Park said in a statement on Tuesday that TSMC, Powerchip Semiconductor (5346.TWO) and Vanguard (5347.TWO) were investing a total T$450 billion to build new plants, creating eventual production value of T$300 billion annually.

The three companies conducted a joint ground-breaking ceremony.

On Tuesday, TSMC shares rose 2 percent, Powerchip shares fell 1.2 percent and Vanguard shares gained 0.5 percent, while the main TAIEX share index jumped 1 percent.

($1=30.58 Taiwan Dollar)

(Reporting by Baker Li; Editing by Edmund Klamann)