TSMC, the world's biggest contract chipmaker, said it will recruit more than 3,000 employees, or about 13 percent of its total workforce, in 2010 as it expands capacity to meet future demand.

TSMC said on Thursday that it would start the recruitment drive this month, seeking mostly engineers to strengthen its technological competitiveness.

On Tuesday, chip designer Mediatek Inc told Reuters it planned to increase its global headcount by more than 10 percent this year as it rolled out new chips for smartphones.

TSMC, with about 23,000 employees worldwide, wrapped up 2009 with strong December sales, a trend that may continue into 2010 as new technology products boost chip demand.

TSMC and smaller crosstown rival UMC are planning to raise capital spending in 2010 [ID:nTP245381] when chipmakers in the United States and Europe will step up outsourcing to chip foundries in order to cut costs.

TSMC announced the news after the Taipei stock market closed on Thursday. TSMC shares were up 0.64 percent and UMC shares were up 0.56 percent, lagging the main TAIEX's 1.14 percent gain.

(US$1=T$31.8)