TSMC Slows Down: A14 Factory Land Acquisition Postponed
According to the UDN, Taiwan Semiconductor Manufacturing Company (TSMC) has postponed the land acquisition process for the A14 factory in the second phase of the Central Taiwan Science Park, stating that “there is no immediate urgency” for it. In alignment with TSMC’s revised plans, the park’s administration has deferred the scheduled land handover from August to the end of the year, maintaining the intended A14 process technology.
TSMC has indicated that the delay in land acquisition is due to the higher demand for the N2 process, which is expected to begin mass production next year. Additionally, the A16 process, unveiled at a recent North American technology forum, is anticipated to start production in 2026. Given the current market and client demands, the A14 process is not seen as urgent, prompting a prioritization of the N2 and A16 processes and the deferment of related A14 activities.
The development plan for the A14 factory at the Central Taiwan Science Park’s second phase was initiated on March 6th of this year, with land acquisition procedures currently underway. Since April 27th, the park’s administration has held four landowner consultation meetings. The total development area of the park reaches 89 hectares, with an estimated acquisition cost of approximately 23.7 billion New Taiwan Dollars.
The delay in land acquisition by TSMC may be influenced by previous overseas investments in facilities in Japan, the USA, and Germany, which have tightened the company’s internal funding. Moreover, the successful development and forthcoming production of the A16 process have alleviated the immediate need for the A14 process. The A16 process technology, capable of delaying the urgent need for the A14 process, utilizes TSMC’s Super Power Rail architecture and nanosheet transistors, which relocate the power interface to the back of the chip, freeing up more layout space on the front and significantly enhancing logic density and performance. Compared to the N2P process, the A16 offers a speed increase of 8-10% at the same working voltage, or a 15-20% reduction in power consumption at the same speed, and an enhanced density of 1.1 times, making it better suited for high-performance computing products with complex signals and dense power networks.
