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TSMC 1.4nm Fab to Start in October, $49B Investment

2025-08-28 15:04:13Mr.Ming
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TSMC 1.4nm Fab to Start in October, $49B Investment

According to Taiwanese media, TSMC is set to begin construction of its cutting-edge 1.4nm wafer fab in Taichung.

The Southern Taiwan Science Park Bureau (NSTC) reported on August 27 that the second-phase park expansion, including essential water-conservation infrastructure, is expected to be completed by the end of September. Industry sources indicate that TSMC's new Taichung facility could break ground in October, with a total investment estimated between NT$1.2 trillion and NT$1.5 trillion (approximately US$39.2–49 billion).

Construction notifications have already gone out to firms involved in civil engineering, cement, and plant facilities. The advanced process fab's engineering tenders are expected to open soon, signaling that on-site work is ramping up.

The Environmental Protection Administration recently approved the environmental impact variation report for Hsinchu Science Park's Baoshan Phase II, which affects TSMC's 2nm plant. The main concern was a delay in recycled water infrastructure, requiring TSMC to adjust its water usage schedule. Hsinchu authorities and TSMC have committed to supplementing with desalinated seawater and coordinating cross-agency efforts for additional recycled water, aiming for 100% recycled water usage for non-domestic purposes within a rolling two-year review cycle. The project successfully passed the environmental review.

On the global stage, Intel has hinted that its next-generation A14 (1.4nm) process might be developed with select customers; if no partners come forward, the company may halt further advanced node development. Samsung has postponed 1.4nm mass production from 2027 to 2029, focusing instead on improving 2nm yields. Analysts suggest this opens the door for TSMC to accelerate its 1.4nm roadmap to maintain market leadership.

TSMC's planned 1.4nm Taichung Fab 25—on the site of the former Xingnong Stadium—will consist of four fabs. The first fab is scheduled for risk production by the end of 2027, with full-scale production in the second half of 2028. Initial revenue for the new fab is expected to exceed NT$500 billion. The first phase will include two 1.4nm fabs, with the second phase potentially advancing to A10 (1nm) processes.

The company has already notified partners to prepare equipment for 1.4nm, aiming to install a pilot line at Baoshan Phase II in Hsinchu this year. Originally planned as a 2nm facility, Baoshan Fab 20's second line will now be 1.4nm, the third line for 1nm R&D, and the fourth line could explore 0.7nm. In Taichung, the initial four-fab plan features two 1.4nm fabs, with the latter two possibly targeting 1nm.

Meanwhile, the Southern Taiwan Science Park Bureau is developing the Shalun area in Tainan, expected to be ready for investment by Q3 2027. TSMC is considering establishing a 1nm advanced node hub here, with the 500-hectare site potentially accommodating up to ten fabs.

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