Taiwan Semiconductor Manufacturing Company (TSMC) has gained land use rights for a 449,500-square meter industrial site in the Nanjing Pukou Economic Development Zone, China, according to a company filing with the Taiwan Stock Exchange (TSE). The term of the land-use rights is 50 years.

The value of the total transaction for TSMC is NT$763 million (US$23.6 million), according to the filing.

TSMC will use the land to build its first 12-inch wafer plant in China. Groundbreaking for the plant is set to kick off in July, according to a report by Taiwan's Central News Agency (CNA). Roger Luo will lead TSMC's Nanjing fab, the report indicated.

TSMC and the municipal government of Nanjing, China in March 2016 signed an agreement under which the foundry house will make an investment in Chinese city valued at US$3 billion to establish TSMC (Nanjing) Co., a wholly-owned subsidiary managing a 12-inch wafer fab and a design service center.

TSMC's 12-inch fab in Nanjing is scheduled to begin production of 16nm chips in the second half of 2018, with monthly capacity of 20,000 wafers.