TSMC's Mammoth Kaohsiung Expansion: A $45 Billion Bet on Taiwan's Semiconductor Future

Taiwan's Tech Giant Fuels Global Demand with Massive Investment in Advanced Chip Production

Taipei, March 31 – Taiwan Semiconductor Manufacturing Co. (TSMC) is making a monumental investment in its future. The company is pouring over NT$1.5 trillion (US$45.16 billion) into its Kaohsiung complex in southern Taiwan, according to Y.P. Chyn (秦永沛), TSMC's Executive Vice President and Co-Chief Operating Officer.

Speaking at the topping-out ceremony for Fab 22 in Kaohsiung, Chyn outlined the ambitious plans for the complex, which will unfold in five phases. The project is poised to generate over 7,000 high-end technology jobs, and a further 20,000 construction roles.

The ceremony marked a significant milestone with the completion of Phase II of the Kaohsiung complex, preparing the site for future production. The development of the cutting-edge 2nm process is progressing well, with mass production scheduled to commence later this year, according to Chyn.

Chyn emphasized that the completion of Phase II in the Kaohsiung compound is a critical achievement in TSMC's 2nm process development. TSMC is also developing the 2nm process in Hsinchu, northern Taiwan.

Production equipment is currently being installed in Phase I, while construction of Phase III is underway. Chyn announced the launch of Phase IV and Phase V in the Kaohsiung complex, bringing the total investment to over NT$1.5 trillion. Upon completion of all five phases, the Kaohsiung facility will boast cleanrooms equivalent to 46 standard soccer fields, Chyn stated.

TSMC's new 2nm technology is designed to meet robust global demand. Its production expansion highlights the company's dedication to its clients, Chyn said.

During the initial two years of commercial production, Chyn predicts that demand for the 2nm process will surpass the demand seen for the 3nm process, the latest technology currently in commercial production by TSMC, over the same period.

Alongside TSMC's other wafer fabs in the Southern Science Park, the company is poised to establish the world's largest semiconductor cluster, according to Chyn.

Chyn estimates that TSMC's 2nm development is set to generate approximately US$2.5 trillion in end-user product value worldwide.

The 2nm process, according to Chyn, will offer a 10-15% speed increase compared to the 3nm process at the same power consumption level, while also achieving 25-30% lower power consumption at the same speed.

TSMC is in discussions with the authorities to secure additional land for its investments in Taiwan, as highlighted by Chyn.

Despite its global investments, including those in the United States, Japan, and Germany, TSMC has reaffirmed its commitment to Taiwan as its home base, and will continue to expand its operations there.