[News] TSMC Speeds up Expansion in Taiwan: up to 10 Fabs Reportedly under Construction or Starting in 2026

As NVIDIA is scheduled to release its Q1 earnings release on February 25 and the GTC 2026 conference in March, major foundry partner TSMC’s expansion move keeps drawing market attention. Liberty Times, citing semiconductor supply chain sources, reports TSMC could have up to 10 fabs across Taiwan’s northern, central, and southern science parks, combining those already under construction with planned groundbreakings in 2026.

Hsinchu Fab 20, Taichung Fab 25 Take Center Stage

Notably, cutting-edge nodes—including 2nm, A16, and A14—along with advanced packaging capacity remain TSMC’s primary focus. According to Liberty Times, civil engineering is underway for the P3 and P4 plants at TSMC’s 12-inch Fab 20 in Hsinchu Baoshan, which will serve as production bases for next-generation processes below 2nm.

As previously reported by TechNews, TSMC’s 2nm volume production, which began in late 2025, is progressing in parallel at Fab 20 in Hsinchu Baoshan—adjacent to its global R&D center—and the newly built Fab 22 in Kaohsiung. Fab 20 has already entered production, with an expected monthly capacity of 20,000–25,000 wafers, the report added.

Meanwhile, Liberty Times notes that TSMC’s Fab 25 at Central Taiwan Science Park is being developed as a 1.4nm hub, with four fabs planned. Piling work reportedly began in late 2025, risk production is expected by late 2027, and full-scale volume production is slated for the second half of 2028.

Beyond 1.4nm, the Central Taiwan Science Park will also become a key hub for TSMC’s advanced packaging. Commercial Times notes that the AP5B fab in Taichung is on track for completion in 2026, and in Chiayi, the AP7 advanced packaging P1 fab is progressing on a similar schedule, reinforcing the region’s role as a major production center.

TSMC’s Southern Taiwan Expansion Speeds up

Liberty Times highlights Southern Taiwan as another center of TSMC’s major domestic investment and capacity expansion. At Fab 22 in Kaohsiung, the heart of TSMC’s 2nm production, P1 began volume production in the second half of last year, P2 has completed equipment installation and entered trial production, and P3’s building structure is mostly complete, the report notes.

Additionally, Liberty Times notes that construction on P4 and P5 for Fab 22 is already underway, with all five fabs expected to be fully operational by Q4 2027.

Meanwhile, Tainan is emerging as a key frontier for TSMC’s cutting-edge node expansion. Liberty Times reports that, to meet surging 2nm demand, the foundry plans additional investment in the Tainan Special Zone A for new 2nm fabs. If P1 clears the environmental review in April, construction could begin as early as May, the report indicates.

Notably, TSMC is also ramping up aggressive capex to support domestic and global expansion. In mid-January, it surprised the market by guiding 2026 capital expenditures at US$52–56 billion, a roughly 30% year-over-year jump. Thus, this surge in investment has drawn attention not only to TSMC’s strengthened operations in the U.S. and Japan but also to its ongoing and planned expansion across Taiwan.

Read more

• [News] TSMC 2nm Reportedly Tight Amid Mobile, HPC Demand; NVIDIA May Be First to Adopt 1.6nm in 2028
• [News] TSMC Reportedly Plans 2-nm Boost in Taiwan with Three New Fabs, NT$900B Investment

(Photo credit: TSMC)