Taiwan Semiconductor Manufacturing Company (TSMC) will soon strike deals with a number of equipment, materials and components companies that will support production at its new 12-inch plant in Nanjing, China, and has started to train the senior staff that will be stationed at the new facility, according to industry sources.

TSMC is also inviting its suppliers to provide services locally in Nanjing, said the sources. Companies including Air Products and Chemicals, Chung King Enterprise, Gudeng Precision Industrial, Laien Parts Technology, Linde LienHwa, Marketech International and Shih-Her Technologies have agreed to provide TSMC's Nanjing plant their services locally, the sources indicated.

Meanwhile, a team of 200-300 employees from TSMC's 8-inch fab in Shanghai will shift to the new 12-inch plant in Nanjing, and is now undertaking training at the Taiwan-based foundry's headquarters, the sources noted.

TSMC is on track to complete the construction of its new 12-inch plant in Nanjing, China, which will be ready for 16nm chip production in 2018, the sources said. Construction of the fab kicked off in July 2016.

Equipment move-in will take place at TSMC's Nanjing plant in the second half of 2017, Roger Luo, president for TSMC Nanjing, was quoted saying in previous reports. The new 12-inch facility is set to begin pilot production in the first half of 2018 followed by volume production in the second half of the year, according to Luo.

TSMC's Nanjing fab will directly enter 16nm FinFET chip production with target production capacity of 20,000 wafers monthly.