Taiwan Tech Triumph: TSMC Double Downs on 2nm, Kaohsiung Fab Soars Ahead!

Recent reports indicate that TSMC (Taiwan Semiconductor Manufacturing Company) is set to install equipment in its 2nm wafer fab located in the Hsinchu Science Park in Taiwan. The installation, planned to commence in April 2024, marks a significant milestone in the N2 process technology project. The fab’s proximity to TSMC’s R1 research and development center, which spearheads the N2 process development, is strategically aimed at facilitating pilot production.

According to a CTEE report, TSMC’s second 2nm wafer fab in the Kaohsiung Science Park in Taiwan may expedite its preparatory work. The first phase of production is slated to begin mass production in 2025, ahead of the initially anticipated 2026, closely paralleling the timeline of the Hsinchu Science Park’s 2nm fab. It is reported that the second phase of the project has already secured all necessary permits.

Given TSMC’s usual practice of not deploying two new fabs with advanced processes simultaneously, a cautious approach to the progress of this project is advised. Additionally, two major considerations arise: firstly, TSMC has recently adopted a cautious stance on increasing capital expenditures, making early investment in facility readiness less likely; secondly, even with production equipment installed, the costly pricing of the 2nm process might not attract sufficient customer orders to justify the investment.

If TSMC is indeed motivated to accelerate the capacity of its 2nm process, it is likely due to intensified competition in foundry services from Samsung and Intel, and a desire to serve all major clients willing to pay a premium for the latest semiconductor technology. Such clients are few, to the point of being countable on one’s fingers.