TSMC expanding 3nm capacity in Taiwan, U.S., Japan

Taipei, April 16 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) is expanding production of its advanced 3-nanometer (nm) process in Taiwan, the United States and Japan in a bid to meet fast-growing global demand for artificial intelligence (AI) applications, company Chairman C.C. Wei (魏哲家) said Thursday.

At an investor conference, Wei said the contract chipmaker will accelerate its investment in 3nm process development amid strong demand for AI, smartphones, automotive electronics, and the Internet of Things.

● TSMC expects 2026 sales to grow more than 30%

In the Southern Taiwan Science Park, Wei said TSMC is building new 3-nm production lines scheduled to begin mass production in the first half of 2027, while also converting 5nm capacity in Taiwan fabs to 3nm to further boost output.

In the U.S. state of Arizona, construction of a second fab has been completed with commercial production slated for the second half of 2027 using the 3nm process, Wei added.

In Kumamoto, Japan, TSMC's second fab will adopt the 3nm process, Wei said, adding that commercial production is scheduled to begin in 2028. Taiwan's government has approved TSMC's new production plan there.

In addition, TSMC is investing in advanced Chip-on-Panel-on-Substrate (CoPoS) IC assembly and expects the technology to enter mass production in the next few years, he added.

While expanding its IC assembly capacity, TSMC will continue to work with outsourced semiconductor assembly and testing (OSAT) firms to boost production and meet client demand, Wei said.

Commenting on Tesla and SpaceX CEO Elon Musk's TeraFab project to build wafer fabs and produce chips for Tesla vehicles, SpaceX spacecraft, and Optimus humanoid robots, Wei said there is no shortcut in the pure-play foundry business.

A contract chipmaker needs two to three years to build a fab and an additional one to two years to begin mass production, so the pure-play foundry business is a long-term investment and capital-intensive in nature, he added.

TSMC's core advantage is its lead over peers in technology development, manufacturing strength, and the trust it has earned from clients, Wei said, noting that this is why the company will increase its capital expenditure to meet client demand.

TSMC will not outsource production to other contract chipmakers and will continue to expand capacity, Wei added.

There are growing concerns about the impact of the conflict in the Middle East on global supplies of specialty chemicals such as helium and hydrogen, which are critical to semiconductor production.

In response, TSMC Chief Financial Officer Wendell Huang (黃仁昭) said at the investor conference that the company has already diversified its sources for these chemicals, maintains sufficient inventory levels, and expects little short-term impact on production.