Global semiconductor manufacturing giant (TSMC) has outlined its plans to build seven new plants in 2024 to enhance its global competitiveness and meet the surging demand for high-performance computing devices and smartphones. At the TSMC 2024 Taiwan Technology Symposium, Y. K. Hwang, senior director for Fab 18B located in Southern Taiwan Science Park (STSP) near Tainan, said that the company is constructing three new wafer fabs and two new packaging plants in Taiwan, as well as two additional wafer manufacturing facilities overseas.
TSMC’s expansion plans are in response to the overwhelming demand for its 3nm process technology. The company predicts that orders for its 3nm chips will triple in 2024 compared to the previous year.
Huang highlighted that the two new wafer plants under construction in Hsinchu and Kaohsiung, which began in 2022, will focus on producing 2nm chips. Mass production at these plants is anticipated to commence in 2025. Additionally, an advanced packaging facility in Central Taiwan started construction in 2023, with another in Chiayi set to begin this year. These facilities will be geared towards mass production of Chip on Wafer on Substrate (CoWoS) and Small Outline Integrated Circuit (SOIC) technologies by 2026.
The expansion is seen as a strategic move to solidify TSMC’s position as the world’s largest contract chip maker. The company is also exploring the potential of using nuclear power for chip manufacturing, pending revisions to Taiwan’s laws. In other recent developments, Apple executives have reportedly made secret visits to TSMC to secure the first batch of 2nm production capacity, while TSMC CEO C.C. Wei and other executives went to ASML’s headquarters in Holland last week even though TSMC is not expected to adopt ASML’s latest High-NA EUV machines for its future-gen A16 process in 2026.
TSMC’s expansion plans are not without challenges. The company faces issues such as retaining new engineers and addressing power and water supply concerns. However, the construction of new facilities and the adoption of advanced technologies are expected to mitigate these challenges and drive TSMC’s continued growth.
Long time technology industry fan here in Taiwan.
