Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, is building or planning to break ground on approximately 10 fabrication plants in Taiwan this year, according to local media reports.
Taiwanese outlets including Liberty Times reported Monday, citing sources, that TSMC has launched construction projects for cutting-edge process nodes and advanced packaging facilities across science parks in northern, central, and southern Taiwan.
According to sources, TSMC is conducting third-phase civil engineering work at Fab 20 in the Baoshan area of Hsinchu Science Park in northern Taiwan. The company is constructing Plant 3 (P3) and Plant 4 (P4) for mass production of 2-nanometer chips using 12-inch (305mm) wafers.
The sources said TSMC plans to build four plants (P1-P4) at the second-phase expansion site of the Central Taiwan Science Park's Taichung complex for production of cutting-edge 1.4-nanometer chips. Trial production is scheduled for late 2027, with mass production expected in the second half of 2028.
At Fab 22 in the Nanzi Science Park in Kaohsiung, southern Taiwan, Plant 1 (P1) began mass production in the second half of last year while Plant 2 (P2) is in trial production. Plants 3 through 5 (P3-P5) are currently under construction, the sources added.
If environmental impact assessments pass in April for Plant 1 at a designated Zone A in Tainan for 2-nanometer production, construction will begin in May. TSMC also plans to build a CoWoS advanced packaging facility at the third phase of the Southern Taiwan Science Park and two packaging plants at Chiayi Science Park this year.
Another source explained that TSMC's aggressive expansion reflects the company's assessment that global artificial intelligence-related supply cannot keep pace with demand. The source also attributed the move to slower-than-expected construction progress at TSMC's Arizona facilities in the United States.
The source added that TSMC's Taiwan investment push also aims to address concerns about the weakening "silicon shield" — Taiwan's strategic importance as a chip supplier — and fears that Taiwan's TSMC could transform into "America's TSMC" (ASMC) due to recent U.S. factory expansions.