Taiwan Semiconductor Manufacturing Company (TSM) might expand the production capability of its factory in Shanghai's Songjiang District.

The factory is currently focused on 8-inch CMOS chips, and after getting an import license for its 0.18 micron technology, which was developed in Taiwan, the production capability of their factory in Shanghai's Songjiang District will be expanded from 30,000 to 90,000 in 2007.

TSMC's expansion plans do pose a threat to other semiconductor manufacturers in China. TSMC has long been involved in both legal and business battles with Semiconductor Manufacturing International Corporation (SMI), the leader of semiconductor manufacturing in mainland China. SMIC says it produces about 180,000 chips per year.