TSMC to spend $2.4 billion on capacity expansion -

TSMC has been given the go ahead to spend $2.4 billion on expanding its advanced chip process production, as well as constructing a new fab.

Following a board of directors meeting, the Taiwanese mega-foundry was granted permission by the board to "expand and upgrade" production of its most advanced process 28nm chips.

The decision followed a meeting regarding TSMC's July sales results which showed an increase of 37.3 percent from the same point the previous year, hitting $1.6 billion for the month.

Supply of 28nm chips has been tight for many customers as TSMC continues to ramp up production. In the second quarter, 28nm chips accounted for seven percent of total wafer revenues. So with sales up and strong demand for its advanced process chips, it seems that the board at TSMC is happy to expand production.

The board also gave the nod for $378 million to be spent on building a new fab as well as fitting it with the appropriate facilities.

The details are scant so far, and it was not clear in the statement when the fab construction would begin, though it is likely that the any building would support production of chips at more advanced process. The chip maker is set to begin 20nm production next year. 

TSMC recently announced its intentions to begin development at the 20nm process with ARM on FinFET server chip designs.  ARM later announced it would be extending its partnership with GlobalFoundries.