World’s largest semiconductor foundry TSMC is reportedly planning a massive investment over the next five years to construct 25 additional fabs in Taiwan, following its expansion in the U.S.

		0
TSMC's manufacturing facility in Arizona, U.S. TSMC reportedly plans to make large-scale investments to construct 25 additional fabs in Taiwan as well. / Courtesy of United Daily News (Lianhe Bao)

Beijing sources familiar with Taiwan's information and communications technology (ICT) industry stated on July 20 that TSMC appears to be considering locations such as Kaohsiung and Tainan in the south, Chiayi in the southwest, and Taoyuan in the north as candidate sites for new fabrication plants. They added that the science park administrations overseeing these respective regions have already finalized the land development plans.

The sources explained that these plans aim to allay growing concerns that expanding facilities in the United States could weaken Taiwan's "Silicon Shield" and potentially transform Taiwan's TSMC into an "American TSMC (ASMC)."

Earlier, on July 16, TSMC Chairman C.C. Wei announced during the second-quarter earnings call that the company plans to invest an additional $100 billion in Arizona to build more than four advanced wafer fabs—utilizing 2-nanometer (nm) and more advanced process nodes—along with advanced packaging facilities. He also explained that to meet market demand for the 3nm node, TSMC plans to build additional 3nm wafer fabs in Taiwan, Arizona, and Japan, while converting select 5nm equipment lines to 3nm.

He further noted that JASM, TSMC's manufacturing subsidiary in Kumamoto, Japan, focuses on producing CMOS image sensors (CIS), while ESMC, a joint venture in Dresden, Germany, in which TSMC holds a 70% stake, concentrates on automotive and industrial applications. At the same time, he pledged that TSMC would continue investing in Taiwan.

In response, Taiwan's Executive Yuan emphasized that the government will ensure Taiwan retains its leading global position by continuously securing cutting-edge technologies, maximum manufacturing capacity, and a comprehensive tech industry ecosystem. It added that the government has established a government-to-government (G2G) communication mechanism with the U.S. side.

Furthermore, TSMC stated that the development of A14 (1.4nm)—a next-generation advanced silicon technology based on full-node scaling—is progressing smoothly as planned. Trial production is scheduled to begin in 2027, with mass production targeted for around 2028. Mass production for A13 (1.3nm) and A12 (1.2nm) is expected to follow around 2029.

Nanometer refers to the width of semiconductor circuit lines; narrower line widths reduce power consumption and increase processing speeds. Taiwan is accelerating its efforts to establish an unassailable lead in the global semiconductor industry that no other nation can match.

                                                                                                           Hong Soon-do