[News] TSMC Reportedly Plans 2-nm Boost in Taiwan with Three New Fabs, NT$900B Investment

Last week, TSMC Chairman C.C. Wei received the semiconductor industry’s top honor, the Robert N. Noyce Award, and revealed that demand now exceeds the company’s capacity by three times, leaving advanced process capacity “massively insufficient,” Commercial Times reports. Amid surging AI chip demand, Liberty Times suggests TSMC plans three more 2-nm fabs in Taiwan—likely near the Southern Taiwan Science Park—with a total investment of around NT$900 billion.

According to Liberty Times, TSMC had initially planned seven 2-nm fabs in Hsinchu and Kaohsiung, but surging advanced-node demand is pushing the foundry to expand further. Each new fab could cost around NT$300 billion, bringing the total for the three additional 2-nm fabs to roughly NT$900 billion, the report adds.

In terms of the timetable, the report notes that groundbreaking could happen as early as next year, pending land acquisition, environmental reviews, and approvals.

While TSMC has already kicked off 2-nm production this quarter, Liberty Times reports that the company currently has seven 2-nm fabs planned—two in Baoshan, Hsinchu, and five in Nanzi, Kaohsiung. If the rumors prove true, three additional 2-nm fabs could bring Taiwan’s total to 10.

On the other hand, the Economic Daily News reported that TSMC is pushing beyond 2 nm, having broken ground on its first 1.4-nm fab in Taichung in early November, with mass production slated for the second half of 2028.

2-nm Rollout Gains Speed in U.S.

Meanwhile, TSMC also revealed at its October earnings call that the company is accelerating capacity expansion in the U.S., with Chairman C.C. Wei stating that the company is preparing to “upgrade its technology faster to N2, and more advanced technology to Arizona.” According to Nikkei, TSMC is nearing the acquisition of an additional large plot of land adjacent to its latest U.S. fab, signaling a potential expansion beyond its current $165 billion investment plan.

As TSMC moves to produce 30% of its N2 (2-nm) output in the U.S., Economic Daily News reported in September that the company is fast-tracking its Arizona expansion, with the third fab now slated to begin 2-nm and A16 (angstrom-class) production in 2027—one year ahead of schedule.

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(Photo credit: TSMC)