Taiwan Semiconductor Manufacturing Co. (TSMC) has reportedly produced three times more 28nm process chips so far in the third quarter than in the second quarter. More of the capacity installation means the foundry giant is preparing for seasonal demand surges.

According to Taiwan Economic News, in the first half of this year, TSMC spent over US$3.6 billion on expansion, with 28nm capacity being the primary expansion target. As the company has set capital expenditure for this year at US$8-8.5 billion, the company still has around US$5 billion available in the second half for adding leading-edge capacities.

Based on the company's expansion pace, industry executives estimated TSMC will be able to ease shortage of its 28nm process supplies in the fourth quarter.

According to capital-equipment suppliers, TSMC's yield rate of 28nm process production has reached over 80% after six months of adjustments, making the company's 28nm production yield rate the highest of all first-tier chipmakers in the world.

The company's Fab 15 foundry module, which is TSMC's primary 28nm process tool, is estimated to end the third quarter with installation of 69,000 wafers of 28nm process capacity, which is likely to further increase to 135,000 wafers in the fourth quarter.