Taiwan Semiconductor Manufacturing Company (TSMC) is scheduled to start equipment installation for the first-phase construction of a new LED R&D center in the fourth quarter of 2010, according to industry sources.

The R&D center, to be located at the Hsinchu Science Park (HSP), will target the LED lighting market and initially have 8-12 MOCVD machines installed, the sources added.

TSMC in November 2009 announced a budget of US$46 million for setting up a production line and product development lab for solid state lighting.

TSMC has been actively building up its LED patent portfolio, including investment in US-based LED player BridgeLux through its affiliated VTAF, the sources noted.