[News] TSMC Confirms Kaohsiung Plant Will Adopt 2nm Advanced Process

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TSMC previously announced in November 2021 that it plans to establish two wafer fabrication plants for the 7nm and 28nm processes in Kaohsiung, a southern city of Taiwan. Construction was set to begin in 2022, with official production expected to commence in 2024. However, following the announcement, there have been changes in the progress of the Kaohsiung plant development.

Firstly, there were reports of adjustments to the 7nm plant by the end of 2022, in response to weakened demand in the smartphone and PC markets. Subsequently, there were also reports of changes to the 28nm plant’s plans.

It wasn’t until TSMC’s Q1 2023 earnings conference that they officially announced the adjustment of the Kaohsiung 28nm plant’s construction plans, focusing on capacity enhancement for more advanced process technologies.

At the time, TSMC didn’t specify the exact advanced process that would be introduced, only emphasizing that the construction of the wafer fab would proceed as planned. This triggered market speculation that TSMC was likely to adopt the advanced 2nm process technology at the Kaohsiung plant, in response to the rapidly growing demand in the artificial intelligence market.

This week, TSMC confirmed that the Kaohsiung plant will adopt the 2nm process technology. TSMC stated that the construction of the wafer fab in Kaohsiung will proceed as usual, but the previous expansion plans will be adjusted to accommodate the production of the 2nm advanced process technology, in response to strong market demand for advanced processes.

As for the specific details and contents of the plant development, they have not been further disclosed at this stage. According to TSMC’s plans, mass production of the 2nm process is expected to begin in 2025, with production bases including the previously announced Hsinchu and Taichung facilities, as well as the newly announced Kaohsiung facility.

(Photo credit: TSMC)