TSMC still considering where to build 1nm fab after Chiayi report

Taipei, Jan. 22 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) said on Monday it was still considering venue options for its new advanced wafer fab, contrary to a local media news report earlier in the day that claimed the chipmaker was planning to build a 1-nanometer wafer plant in Chiayi County, southern Taiwan.

While the world's largest contract chipmaker did not directly comment on the matter of Chiayi as a potential location, TSMC, the world's largest contract chipmaker, said in a statement that the company would need to take all factors into account before a final decision on where to build the 1nm fab was made.

The Economic Daily News cited unnamed sources as saying that TSMC had submitted an application to the authorities supervising the Chiayi section of the Southern Taiwan Science Park (STSP) for 100 hectares of land so it would be able to expand operations.

The report said TSMC was expected to use 60 of the 100-hectare parcel to build a 1nm fab, while the remaining 40 hectares were to be used to set up an advanced IC packaging and testing plant to provide a one-stop service for its clients.

According to the report, it is estimated that TSMC would spend more than NT$1 trillion (US$31.95 billion) in its 1nm process development.

In the statement, TSMC said Taiwan is the hub for the chipmaker's worldwide expansion.

TSMC added it was not ruling out any potential venue and that it would continue to work with science park authorities to choose a location for the investment. However, the chipmaker did not specify whether the authorities it was in discussion with were the STSP, the Central Taiwan Science Park (CTSP), or the Hsinchu Science Park.

In December 2023, Taichung Mayor Lu Shiow-yen (盧秀燕) told a Taichung City Council hearing that TSMC would build a fab in the second phase of CTSP expansion that would use more advanced technology than the 2-nanometer process.

It was initially thought that TSMC would locate a new 1.4nm process factory in the Longtan section of the Hsinchu Science Park, following a December 2022 announcement by the park bureau, although TSMC never commented on that announcement.

However, in October 2023, TSMC announced it had abandoned the Longtan plan amid opposition from many residents who would have been affected by the proposed land expropriation.

After giving up on the Longtan plan, several cities and counties including Chiayi, Tainan, Kaohsiung and Pingtung in southern Taiwan have been trying hard to attract the chipmaker, touting the advantages their location holds.

The 3nm process made its debut at the end of 2022 as the latest TSMC technology to be used in commercial production.

The chipmaker is building a 2nm fab in Baoshan township in the Hsinchu Science Park with commercial production scheduled to start in 2025. The 2nm production will be expanded to Kaohsiung with two fabs planned.

In an investor conference held on Jan. 18, TSMC announced it was evaluating the possibility of building a third 2nm process fab in Kaohsiung following strong demand.

Meanwhile, TSMC is building two fabs in the U.S. state of Arizona with the first one slated to start mass production in 2025, using the 4nm process.

TSMC's fab in Japan's Kumamoto is scheduled to open on Feb. 24 and its commercial production is expected to begin in the fourth quarter of this year to roll out chips using the mature 12nm, 16nm, 22nm, and 28nm processes.

In Germany, TSMC has teamed up with Bosch GmbH, Infineon Technologies AG, and NXP Semiconductors N.V. to set up a joint venture, called European Semiconductor Manufacturing Co. (ESMC), which is aiming to build a wafer fab in Dresden.

The German plant is scheduled to start commercial production at the end of 2027, using the 12nm, 16nm, 22nm and 28nm processes to produce chips for automotive electronics and specialty industrial devices.