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TSMC agreed to acquire Worldwide Semiconductor Manufacturing Corp. (WSMC) in January 2000 to expand its foundry capacity as demand for outsourced chip manufacturing rose. The announced deal was a two-for-one TSMC share swap, and WSMC brought eight-inch wafer fabs with 0.25- and 0.18-micron process technology.

Why did TSMC buy WSMC?

TSMC said the acquisition would help it respond to sustained growth in demand for integrated-circuit foundry capacity. Chairman Morris Chang described worldwide demand as steadily and strongly increasing, and said TSMC was expanding both through its own programs and by selecting suitable cooperation opportunities. EE Times reported the announcement on January 7, 2000.

The capacity objective was specific: TSMC expected annual output to rise from 2.8 million eight-inch wafers in 2000 to about 3.4 million in 2001 as a result of the acquisition. These were projections reported at the time, not verified figures for realized post-acquisition output. EE Times

What were the deal terms?

The announced structure was a two-for-one exchange of TSMC shares for WSMC shares. The contemporaneous EE Times account said the transaction’s valuation was undisclosed. A later company-history reference puts the stock value at approximately $550 million; that is a retrospective estimate, not the valuation disclosed in the January announcement. TSMC company history

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When did the acquisition happen?

TSMC announced the planned acquisition on January 7, 2000, and expected to complete it by the end of June that year. The cited accounts establish the announcement and expected completion window, but do not give a definitive post-closing legal date. This was a 2000 transaction, not a current acquisition.

What did WSMC add to TSMC?

WSMC operated an eight-inch wafer fab using 0.25- and 0.18-micron process technologies. A second eight-inch fab was expected to open in March 2000. WSMC projected combined output of about 400,000 wafers by the end of 2000 and approximately 760,000 in 2001. Those amounts were WSMC projections reported at the time, rather than independently confirmed production results. EE Times

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The WSMC figures describe its projected output, while TSMC’s 2.8-million-to-3.4-million figures describe the anticipated change in TSMC’s overall annual output. They are different measures and should not be treated as interchangeable or added together without further evidence.

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