TSMC Gears Up: 2nm Production Starts, Expansion Plans Unveiled

Reports have previously indicated that Taiwan Semiconductor Manufacturing Company (TSMC) is embarking on significant investments across Northern (Hsinchu Baoshan), Central (Taichung Zhongke), and Southern (Kaohsiung Nanzih) Taiwan to establish 2nm fabrication plants. Specifically, the Hsinchu Science Park’s Baoshan site’s second phase will see the construction of the Fab20 wafer fabrication plant, comprising four 12-inch wafer fabs (P1-P4), marking the commencement of the next-generation N2 process technology.


According to DigiTimes, TSMC has solidified its advanced process development and expansion plan for the next five years: The Baoshan P1 plant, focusing on the 2nm technology, is slated to begin pilot production in the second half of 2024, transitioning to small-scale production in the second quarter of 2025, with monthly capacity expected to gradually increase from 3,000 to 20,000 wafers. The Baoshan P3 plant is scheduled to commence operations in May 2025, joining the production of 2nm chips, while the Baoshan P3 and P4 plants are set to adopt the A14 process in 2027. Additionally, the Kaohsiung Nanzih area will see the introduction of the P4 and P5 plants, with mass production anticipated between 2027 and 2028. The Taichung Central Science Park’s wafer fab will undergo expansion to include factories for the 2nm and smaller process nodes, aiming for completion in 2027.

TSMC’s initial plans for the Kaohsiung Nanzih area’s Fab22 wafer fab in November 2021 were to produce chips with 7nm and 28nm process nodes. However, in October 2022, these plans were adjusted to prioritize the 28nm production line, targeting mass production in 2024. By April 2023, the focus shifted towards advanced process technologies. With these changes, additional P4 and P5 facilities were introduced, also laying the groundwork for the future A14 process.

Adjustments to TSMC’s plans also encompass modifications to local electricity and water usage strategies, as the adoption of more advanced process nodes significantly increases the demand for utilities, potentially straining local resources. Recent adjustments in industrial electricity pricing, with TSMC as the primary consumer-facing up to a 25% increase, may prompt the company to offset costs by raising its foundry prices. It is understood that TSMC is the only local entity with an annual electricity consumption exceeding 15 billion kWh, having surpassed 21 billion kWh in 2022, accounting for 7.5% of the province’s total electricity consumption.