Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday raised its investment on an advanced Tainan factory to a total of NT$1.86 trillion (US$60.5 billion) to boost advanced technologies capacity including 3-nanometer, after its plans to produce chips in the US triggered concerns at home over technology outflow and talent drain.
That represented a significant increase from the NT$700 billion the chipmaker announced in 2018 on the Tainan “giga-fab," dubbed Fab 18, to produce 5-nanometer chips, and establish a research and development (R&D) team. The company at the time said that it would reserve half of the facility’s space for the production of 3-nanometer chips.
TSMC, the world's biggest contract chipmaker, yesterday launched the eighth phase of construction at Fab 18 to mass produce 3-nanometer chips, the most advanced chips available.
Photo: Reuters
TSMC began making 5-nanometer chips at the fab in 2020 and the commencement of 3-nanometer chip production follows Moore’s Law, which postulates that the number of transistors on computer chips would double every two years, it said.
“Powered by the megatrends of 5G and high-performance computing, TSMC’s 3-nanometer technology is experiencing strong market demand,” TSMC chairman Mark Liu (劉德音) told a ceremony in Tainan marking the beginning of mass production of 3-nanometer chips and capacity expansion.
The moves show TSMC’s strength in the development of advanced technology and capacity expansion to satisfy customer demand, as well as its preparations for the next wave of growth in the semiconductor industry, Liu said.
Photo: Ann Wang, Reuters
TSMC is also building 3-nanometer chip capacity in Arizona. The company earlier this month said that it plans to invest US$40 billion to make 3-nanometer and 4-nanometer chips at its Arizona facilities, which are under construction.
Chips made using 3-nanometer technology would power supercomputers, cloud-based data centers, high-speed Internet-connected devices, mobile devices and augmented-reality devices, as well as virtual-reality gadgets.
Apple Inc, Nvidia Inc and Advanced Micro Devices Inc are usually the first adopters of TSMC’s most advanced chips.
TSMC estimates that revenue from 3-nanometer chips in the first year of mass production would be higher than the income generated by 5-nanometer chips in the first year of their mass production in 2020.
The chipmaker expects its 3-nanometer technology to create end products with a market value of US$1.5 trillion within five years.
TSMC would start plans to build up capacity in Hsinchu and Kaohsiung next year, Liu said.
The company said that it is also making preparations for 2-nanometer fabs, which would be at the Hsinchu Science Park (新竹科學園區) and the Central Taiwan Science Park (中部科學園區), with a total of six phases proceeding as planned.
TSMC said that it plans to launch a global R&D center at the Hsinchu science park in the second quarter of next year.
The center would be staffed by 8,000 R&D personnel, it said.
“TSMC is maintaining its technology leadership while investing significantly in Taiwan, continuing to invest and prosper with the environment. This ceremony demonstrates that we are taking concrete action to develop advanced technology and expand capacity in Taiwan,” Liu said.
MORE VISITORS: The Tourism Administration said that it is seeing positive prospects in its efforts to expand the tourism market in North America and Europe Taiwan has been ranked as the cheapest place in the world to travel to this year, based on a list recommended by NerdWallet. The San Francisco-based personal finance company said that Taiwan topped the list of 16 nations it chose for budget travelers because US tourists do not need visas and travelers can easily have a good meal for less than US$10. A bus ride in Taipei costs just under US$0.50, while subway rides start at US$0.60, the firm said, adding that public transportation in Taiwan is easy to navigate. The firm also called Taiwan a “food lover’s paradise,” citing inexpensive breakfast stalls
TRADE: A mandatory declaration of origin for manufactured goods bound for the US is to take effect on May 7 to block China from exploiting Taiwan’s trade channels All products manufactured in Taiwan and exported to the US must include a signed declaration of origin starting on May 7, the Bureau of Foreign Trade announced yesterday. US President Donald Trump on April 2 imposed a 32 percent tariff on imports from Taiwan, but one week later announced a 90-day pause on its implementation. However, a universal 10 percent tariff was immediately applied to most imports from around the world. On April 12, the Trump administration further exempted computers, smartphones and semiconductors from the new tariffs. In response, President William Lai’s (賴清德) administration has introduced a series of countermeasures to support affected
CROSS-STRAIT: The vast majority of Taiwanese support maintaining the ‘status quo,’ while concern is rising about Beijing’s influence operations More than eight out of 10 Taiwanese reject Beijing’s “one country, two systems” framework for cross-strait relations, according to a survey released by the Mainland Affairs Council (MAC) on Thursday. The MAC’s latest quarterly survey found that 84.4 percent of respondents opposed Beijing’s “one country, two systems” formula for handling cross-strait relations — a figure consistent with past polling. Over the past three years, opposition to the framework has remained high, ranging from a low of 83.6 percent in April 2023 to a peak of 89.6 percent in April last year. In the most recent poll, 82.5 percent also rejected China’s
PLUGGING HOLES: The amendments would bring the legislation in line with systems found in other countries such as Japan and the US, Legislator Chen Kuan-ting said Democratic Progressive Party (DPP) Legislator Chen Kuan-ting (陳冠廷) has proposed amending national security legislation amid a spate of espionage cases. Potential gaps in security vetting procedures for personnel with access to sensitive information prompted him to propose the amendments, which would introduce changes to Article 14 of the Classified National Security Information Protection Act (國家機密保護法), Chen said yesterday. The proposal, which aims to enhance interagency vetting procedures and reduce the risk of classified information leaks, would establish a comprehensive security clearance system in Taiwan, he said. The amendment would require character and loyalty checks for civil servants and intelligence personnel prior to
RSS