Taiwan semiconductor Manufacturing Co. (TSMC), the world's largest semiconductor foundry company, will be allowed to use 0.18 micron process technology at its fab in China.

The Taiwan government authorized TSMC to use the process technology at its Shanghai plant. The plant had been building chips on .25 micron technology. Using .18 micron process technology, TSMC will build faster, lower-cost chips.

TSMC has been making semiconductors in China since 2004.