TSMC's A14 (1.4nm) advanced process fab construction project in the Central Taiwan Science Park has begun! TSMC officially submitted its application to the Central Taiwan Science Park Administration yesterday (17th) for commencement of construction. The new plant in the Central Taiwan Science Park is expected to enter mass production in the second half of 2028. The initial investment amount is estimated to be as high as US$49 billion (approximately NT$1.5 trillion), creating 8,000 to 10,000 jobs. The Central Taiwan Science Park Administration stated that the water conservation projects such as the detention pond for the second phase of the Central Taiwan Science Park expansion plan have been completed and will be handed over to TSMC on the 20th of this month. TSMC has completed the bidding for the plant foundation pile project and is expected to start construction on November 5th. Subsequent plant construction contracting operations are in full swing. When TSMC previously announced its production base plans at a technology forum, it stated that the primary production site for the 1.4nm process would be at its F25 plant in Taichung. The company plans to build four plants, with the first plant expected to complete risk-based trial production by the end of 2027 and enter full mass production in the second half of 2028. The new plants are expected to generate revenue exceeding NT$500 billion.

Related supply chain sources indicate that TSMC's new Arizona plant will introduce advanced processes ranging from 2nm to 1.6nm, with 1.4nm production prioritized in Taiwan. Once the four plants in Central Taiwan Science Park reach mass production, they will become the world's largest AI/HPC chip production base.

It is understood that TSMC originally planned to manufacture two plants in the first phase of the Central Taiwan Science Park for the 1.4nm process, with the subsequent two plants in the second phase potentially advancing to the A10 (1nm) process. However, the market has already begun to focus on 1.4nm technology, and rumors indicate that all four plants in Central Taiwan Science Park will be dedicated to the 1.4nm process, with the 1nm process potentially moving to the Shalun Park in Southern Taiwan Science Park. Tainan Mayor Huang Wei-che announced the successful approval of the approximately 531-hectare "Nanke Shalun Ecological Science Park," which is expected to be used for future 1-nanometer semiconductor manufacturing processes.

Recently, SoftBank and NVIDIA have invested in Intel, helping the company advance its advanced chip manufacturing processes. Samsung is also actively advancing the mass production of its 1.4-nanometer process. Industry analysts believe this is prompting TSMC to accelerate its 1.4-nanometer process development to ensure market exclusivity.

Taiwan and the US are connecting, leaving rivals like Samsung and Intel far behind

TSMC is sprinting towards 2nm and more advanced angstrom-level processes, bridging Taiwan and the US. Its Taiwan fab will begin mass production of 2nm this quarter, with the upgraded N2P process taking over in the second half of next year. Its new Arizona fab will also accelerate the introduction of 2nm and subsequently move into angstrom-level processes, significantly outpacing rivals like Intel and Samsung.

Analysts are optimistic that TSMC's simultaneous success at its Taiwan and US fabs will ensure its advanced processes reap the benefits of technological leadership and lay the foundation for continued revenue growth.

TSMC stated that its 2nm process will enter mass production in Taiwan later this quarter as scheduled, with good yield rates. Driven by smartphones, high-performance computing (HPC), and AI applications, it expects rapid growth in 2026.

TSMC also plans to invest in the N2P and A16 (1.6nm) processes, extensions of the 2nm family, with mass production expected in the second half of 2026. New fabs will prioritize N2 production, optimizing N5/N3 capacity. TSMC has not disclosed its production capacity plans for individual process nodes. Analysts estimate that by the end of next year, TSMC's Kaohsiung fab should reach over 50,000 wafers per month for its 2nm process, and its Hsinchu fab will likely approach 50,000 wafers per month. Combined, Taiwan's 2nm process capacity is expected to reach 100,000 wafers per month by the end of next year.

In the United States, TSMC has completed construction on its second wafer fab in Arizona, which will utilize a 3nm process and is working to accelerate mass production by several quarters. Construction has also begun on its third wafer fab in Arizona, which will utilize 2nm and the A16 process, and is considering accelerating production. The fourth wafer fab will also utilize 2nm and the A16 process.

However, in response to strong demand for advanced process nodes from major customers such as Nvidia and Apple, TSMC expects to continue accelerating its Arizona capacity expansion with the cooperation and support of advanced US customers and the federal, state, and city governments. Substantial progress is being made and the expansion is proceeding smoothly as planned. TSMC has internally decided to accelerate the upgrade of its new US fab to 2nm and higher-level process technology. In response to the structural growth of AI, TSMC, combining internal and external market analysis, has implemented a rigorous capacity planning mechanism and is bringing forward development and production coordination by two to three years to ensure supply chain stability.

TSMC emphasized that it is preparing to accelerate its technology upgrade to 2nm and higher-level process technology in Arizona and is about to acquire a second large plot of land near its existing fab to support these expansion plans, providing greater flexibility to meet the very strong long-term demand for AI.

There is close attention on whether TSMC's new Arizona fab layout could be adjusted to bring forward the 2nm process introduction schedule from the market's original 2028 to 2027, only about two years later than the mass production schedule at its Taiwan fab. This would further expand the company's total 2nm process capacity.

Source: Content from Semiconductor Industry Observation