Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, plans to begin construction of its fourth and fifth wafer fabs in Kaohsiung next year, targeting the development of high-end processes.
The two facilities — P4 and P5 — are part of TSMC’s production expansion program, which aims to build five fabs in Kaohsiung.
TSMC facility division vice president Arthur Chuang (莊子壽) on Thursday said that the five facilities are expected to create 8,000 jobs.
Photo: CNA
To respond to the fast-changing global semiconductor industry and escalating international competition, TSMC said it has to keep growing by expanding its production footprints.
The P4 and P5 fabs would be located next to the third fab, P3, and their construction is scheduled to be completed in 2027.
TSMC completely abides by the law and the construction plan is proceeding as scheduled, Chuang said, speaking with residents of Kaohsiung who are concerned about the environmental impact of the fab construction.
TSCM said its first fab in Kaohsiung, P1, which has started equipment installation, is scheduled to start mass commercial production of the advanced 2-nanometer process next year. The 2-nanometer process would become TSMC’s latest technology to begin mass production after launching commercial production of the 3-nanometer process at the end of 2022.
The 2-nanometer process would be 10 percent to 15 percent faster than N3E, an enhanced version of the 3-nanometer process, and consume less power. Densities would also be higher by more than 15 percent.
Construction of the second fab, P2, is set to be completed next year. It would also use the 2-nanometer process, while construction of the third fab is expected to be completed in 2026. That fab is to use the 2-nanometer process or more sophisticated technologies.
TSMC did not disclose what process the 4th and 5th fabs would use.
At an investor conference in mid-October, TSMC chairman C.C. Wei (魏哲家) said the company’s clients appeared more interested in its 2-nanometer process than the 3-nanometer process, so the company is preparing more 2-nanometer production capacity to meet demand.
TSMC already has a 2nm wafer plant in Baoshan in Hsinchu County, where a trial run has begun. Mass production at that facility is expected to begin next year.
The chipmaker is also developing A16 process mass production, which is scheduled for the first half of 2026. The company describes it as a next-generation nanosheet-based technology featuring Super Power Rail, “an innovative, best-in-class backside power delivery solution” that “improves logic density and performance by dedicating front-side routing resource to signals.”
Investor Conference
TSMC is scheduled to host an investor conference on Jan. 16, which will be closely watched for its market outlook and the potential impact of US tariff policies, Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) researcher Arisa Liu (劉佩真) said.
Taiwan's semiconductor industry is likely to exceed NT$6 trillion (US$186 billion) in output by the end of next year, growing 16.5 percent year-on-year, with TSMC anticipated to outpace the average with a 20 percent increase, Liu said.
She said that artificial intelligence (AI) will continue to drive the growth of the semiconductor sector, with TSMC being the leading foundry for AI chips and benefiting significantly from rising demand.
Liu noted that TSMC's growth will be fueled by orders for NVIDIA's B200 and B300 chips, as well as demand for application-specific integrated circuits (ASIC) and AI processors for smartphones and computers.
In addition, the rising demand for 3nm and 5nm chips in AI applications will be key factors propelling TSMC's expansion in the coming year, Liu said.
Market focus is also on the potential impact of tariff policies proposed by US president-elect Donald Trump, who is set to take office on Jan. 20, she said.
Liu pointed out that TSMC may not face direct tariffs, as its chips are not directly exported to the US, but instead sent to system assembly manufacturers.
However, any increase in import duties on US-bound goods could raise prices, potentially affecting both the US and global economies, with indirect impacts on TSMC, she said.
In Italy’s storied gold-making hubs, jewelers are reworking their designs to trim gold content as they race to blunt the effect of record prices and appeal to shoppers watching their budgets. Gold prices hit a record high on Thursday, surging near US$5,600 an ounce, more than double a year ago as geopolitical concerns and jitters over trade pushed investors toward the safe-haven asset. The rally is putting undue pressure on small artisans as they face mounting demands from customers, including international brands, to produce cheaper items, from signature pieces to wedding rings, according to interviews with four independent jewelers in Italy’s main
Macronix International Co (旺宏), the world’s biggest NOR flash memory supplier, yesterday said it would spend NT$22 billion (US$699.1 million) on capacity expansion this year to increase its production of mid-to-low-density memory chips as the world’s major memorychip suppliers are phasing out the market. The company said its planned capital expenditures are about 11 times higher than the NT$1.8 billion it spent on new facilities and equipment last year. A majority of this year’s outlay would be allocated to step up capacity of multi-level cell (MLC) NAND flash memory chips, which are used in embedded multimedia cards (eMMC), a managed
CULPRITS: Factors that affected the slip included falling global crude oil prices, wait-and-see consumer attitudes due to US tariffs and a different Lunar New Year holiday schedule Taiwan’s retail sales ended a nine-year growth streak last year, slipping 0.2 percent from a year earlier as uncertainty over US tariff policies affected demand for durable goods, data released on Friday by the Ministry of Economic Affairs showed. Last year’s retail sales totaled NT$4.84 trillion (US$153.27 billion), down about NT$9.5 billion, or 0.2 percent, from 2024. Despite the decline, the figure was still the second-highest annual sales total on record. Ministry statistics department deputy head Chen Yu-fang (陳玉芳) said sales of cars, motorcycles and related products, which accounted for 17.4 percent of total retail rales last year, fell NT$68.1 billion, or
In the wake of strong global demand for AI applications, Taiwan’s export-oriented economy accelerated with the composite index of economic indicators flashing the first “red” light in December for one year, indicating the economy is in booming mode, the National Development Council (NDC) said yesterday. Moreover, the index of leading indicators, which gauges the potential state of the economy over the next six months, also moved higher in December amid growing optimism over the outlook, the NDC said. In December, the index of economic indicators rose one point from a month earlier to 38, at the lower end of the “red” light.
RSS