TSMC plans more 3nm chip factories in big Taiwan production push

TSMC is further increasing its footprint in Taiwan by building four more facilities valued at $10 billion apiece in its production hub in Tainan, intended for the manufacture of 3-nanometer chips.

Apple chip partner TSMC has been working to expand production in a bid to address the global chip shortage. While attempts elsewhere in the world are slowly progressing, work in its native Taiwan is going at a much faster pace.

Following the completion of four new facilities in an industrial park in the city of Tainan as part of TSMC's production hub, the company is starting construction on another four fabs, reports Nikkei Asia. Each of the construction projects will reportedly cost TSMC around $10 billion, and forms part of a $120 billion investment spree.

All four of the new projects are said to house production lines to make 3-nanometer chips. Future products that could be made at these facilities can include Apple's SoCs, including Apple Silicon and A-series chips.

TSMC declared on Friday that it intends to shift to 2-nanometer chip mass production by 2025.

The four facilities are only part of a larger plan to construct more facilities for the company across the island. At least 20 factories are either under construction or have been recently completed, with the projects creating more than 2 million square meters of floor space.

Taiwan isn't the only country where TSMC is building factories, as one Arizona plant project valued at $12 billion is expected to complete construction in March 2023. TSMC has also reportedly negotiated with Singapore's Economic Development Board about a new facility.

15 Comments

cia 21 Years · 269 comments

About 2 years ago

When China takes back Taiwan it's going to really hurt the west. All these chip facilities will disappear overnight.

Kuyangkoh 7 Years · 838 comments

cia said:

When China takes back Taiwan it's going to really hurt the west. All these chip facilities will disappear overnight.

West….Diversify now forever be held hostage

Or forever***hehe

Clarus 5 Years · 49 comments

cia said:

When China takes back Taiwan it's going to really hurt the west. All these chip facilities will disappear overnight.

Kuyangkoh said:
West….Diversify now forever be held hostage

That is precisely why the last paragraph talks about upcoming facilities being constructed in Arizona USA, and Singapore. TSMC and Apple probably are already deep into contingency planning for if/when China tries to turn Taiwan into the next Ukraine. Everybody knows China is likely to be as ruthless and unconcerned with civilians and scorched earth as Russia.

B-Mc-C 8 Years · 41 comments

Clarus said:

cia said:

When China takes back Taiwan it's going to really hurt the west. All these chip facilities will disappear overnight.

Kuyangkoh said:
West….Diversify now forever be held hostage

That is precisely why the last paragraph talks about upcoming facilities being constructed in Arizona USA, and Singapore. TSMC and Apple probably are already deep into contingency planning for if/when China tries to turn Taiwan into the next Ukraine. Everybody knows China is likely to be as ruthless and unconcerned with civilians and scorched earth as Russia.

But the $12B plant in Arizona pales in comparison to the $40B in new plants that were announced in this article for Taiwan (and only represents 10% of the recent $120B spending spree). It’s likely being built there just to keep Apple happy, and they probably have first right of refusal for all of the Arizona capacity.

It’s far more likely that these plants are Taiwan’s hostages. In other words, “the West will only be forced to go to war for us if we keep most of our plants right here.”