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.
With this year’s Semicon Taiwan trade show set to kick off on Wednesday, market attention has turned to the mass production of advanced packaging technologies and capacity expansion in Taiwan and the US. With traditional scaling reaching physical limits, heterogeneous integration and packaging technologies have emerged as key solutions. Surging demand for artificial intelligence (AI), high-performance computing (HPC) and high-bandwidth memory (HBM) chips has put technologies such as chip-on-wafer-on-substrate (CoWoS), integrated fan-out (InFO), system on integrated chips (SoIC), 3D IC and fan-out panel-level packaging (FOPLP) at the center of semiconductor innovation, making them a major focus at this year’s trade show, according
DEBUT: The trade show is to feature 17 national pavilions, a new high for the event, including from Canada, Costa Rica, Lithuania, Sweden and Vietnam for the first time The Semicon Taiwan trade show, which opens on Wednesday, is expected to see a new high in the number of exhibitors and visitors from around the world, said its organizer, SEMI, which has described the annual event as the “Olympics of the semiconductor industry.” SEMI, which represents companies in the electronics manufacturing and design supply chain, and touts the annual exhibition as the most influential semiconductor trade show in the world, said more than 1,200 enterprises from 56 countries are to showcase their innovations across more than 4,100 booths, and that the event could attract 100,000 visitors. This year’s event features 17
Germany is to establish its first-ever national pavilion at Semicon Taiwan, which starts tomorrow in Taipei, as the country looks to raise its profile and deepen semiconductor ties with Taiwan as global chip demand accelerates. Martin Mayer, a semiconductor investment expert at Germany Trade & Invest (GTAI), Germany’s international economic promotion agency, said before leaving for Taiwan that the nation is a crucial partner in developing Germany’s semiconductor ecosystem. Germany’s debut at the international semiconductor exhibition in Taipei aims to “show presence” and signal its commitment to semiconductors, while building trust with Taiwanese companies, government and industry associations, he said. “The best outcome
Semiconductor equipment billings in Taiwan are expected to double this year, as manufacturers in the industry are keen to expand production to meet strong global demand for artificial intelligence applications, according to SEMI, which represents companies in the electronics manufacturing and design supply chain. Speaking at a news conference before the opening of Semicon Taiwan trade show tomorrow, SEMI director of industry research and statistics Clark Tseng (曾瑞榆) said semiconductor equipment billings in Taiwan are expected to grow by an annual 100 percent this year, beating an earlier estimate of 70 percent growth. He said that Taiwan received a boost from a
RSS