[News] TSMC to Expand Production with New Facilities Across Taiwan in April

2024-03-07 Semiconductors editor

In response to the high demand for AI chips, TSMC has once again initiated a large-scale expansion in northern, central, and southern Taiwan. This expansion includes the first tool-in and the construction of 2-nanometer fabs and advanced packaging plants.

Industry sources cited by the Liberty Time News have suggested that investing in eight to ten facilities may be necessary for the next-generation 1-nanometer technology in Taiwan.

Hot Demand for AI Chips Sparks Ongoing Installation and Production

As per the report citing industry sources, last year, TSMC’s pace of building factories in Taiwan slowed down due to the downturn in the semiconductor industry. However, with the industry’s recovery this year and the high demand for AI chips, expansion efforts in the north, central, and southern regions have become more active.

In April, first tool-in will be commenced at the Baoshan 2-nanometer plant (Fab 20) in the Hsinchu Science Park. Additionally, the 2-nanometer plant (Fab 22) in Kaohsiung is under construction, with plans for a third plant underway. TSMC’s 2-nanometer process is scheduled for mass production in 2025.

AI chips, emphasizing computational power, universally adopt advanced processes. The surge in demand for AI chips is driving the need for advanced packaging technologies like CoWoS.

Currently facing overwhelming demand, TSMC is expanding its advanced packaging facilities in Zhunan, Central and Southern Taiwan Science Park, with plans to start tool-in and join production lines this year. The advanced packaging facility in Chiayi is also commencing construction this year.

Generation of One-Nanometer Fabrication Plants: 8-10 Facilities Needed

According to the report from Liberty Time News citing sources, Intel’s construction of fab typically takes about five to six years. On the other hand, TSMC’s construction and first tool-in in Taiwan are estimated to be completed within two years.

With a monthly installation capacity of 200 units per month for a two-nanometer plant, TSMC reportedly plans to advance to 1.4-nanometer and 1-nanometer advanced processes after the two-nanometer.

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(Photo credit: TSMC)

Please note that this article cites information from Liberty Time News.