In response to strong demand for artificial intelligence chips, Taiwanese contract chipmaker TSMC has once again embarked on a major expansion in its homeland. It includes equipping existing factories with new equipment, building new factories for chip production according to 2nm technology standards, as well as building new chip packaging factories using advanced technologies.
Taiwanese publication Liberty Time News, citing industry sources, reports that to develop and begin production of chips according to TSMC's 1nm technology standards, investments in the creation of eight to ten new factories may be required. According to the same publication, TSMC's pace of new capacity construction in Taiwan slowed last year due to a downturn in the semiconductor industry. However, with the industry recovering this year and demand for advanced AI chips significantly increasing, the company has stepped up projects to build new facilities in the northern, central and southern regions of the island.
It is noted that in April this year, TSMC will begin installing the first production equipment at the Baoshan plant (Fab 20) in the Hsinchu Science Park. In Kaohsiung, the company is building a Fab 22 plant, which will produce 2nm chips. Plans to build a third plant with the same capabilities are also being considered. The start of mass production of chips using TSMC’s 2nm process technology is scheduled for 2025.
Artificial intelligence chips with high computing power are manufactured using advanced technological processes. Rising demand for such chips is also leading to increased demand for advanced chip packaging technologies such as CoWoS. For this reason, TSMC is expanding its packaging facilities in Zhongan, a science park in Central and Southern Taiwan, and plans to begin installing equipment and launching production lines at these facilities as early as this year. Also this year, the company plans to begin construction of a factory with advanced chip packaging technologies in Chiayi City.
According to Liberty Time News, for the same Intel, the construction of a new plant takes about five to six years. in turn, TSMC, according to experts, will be able to build and begin equipping new plants within two years. Having reached the installed monthly capacity for 2nm factories, the company plans to begin preparation and transition to 1.4nm and 1nm process technology.
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