Taiwan Semiconductor Manufacturing Corp (TSMC) won final approval from the Taiwan government for its planned US$898 million chip plant in Shanghai. TSMC was unanimously approved by an interministerial committee to produce chips with technology not exceeding 0.25 microns on the mainland. TSMC will likely launch production at the Shanghai facility by the end of 2004. The plant is scheduled to have an annual production capacity of 35,000 chips by the end of 2005. Government approval for TSMC to manufacture chips on the mainland is likely to lead to approval for similar projects by other Taiwanese technology companies, according to analysts.