[News] TSMC to Build 10 Global Facilities in 2025, Boosting Capex Nearing Historical High

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According to a report in Economic Daily News, TSMC is accelerating its global expansion due to geopolitical factors, with ten ongoing or newly launched construction projects by 2025. This ambitious plan sets a new record for the company and marks a first in the global semiconductor industry, with ten facilities being developed simultaneously.

With this extensive expansion, TSMC’s capital expenditures for 2025 are expected to increase significantly, as the report notes. The company’s record-high capital expenditure was USD 36.29 billion in 2022. The report indicates that, citing institutional investors, TSMC’s capital expenditures in 2025 could range from USD 34 billion to USD 38 billion, potentially surpassing its previous peak.

However, TSMC has clarified that it has not yet disclosed detailed plans for 2025 capital expenditures.

The report highlights that of the ten facilities under construction or planned for 2025, seven will be located in Taiwan, including advanced process fabs and advanced packaging facilities.

According to the report, the seven facilities in Taiwan include two 2nm production bases in Hsinchu and Kaohsiung, with two fabs at each site, totaling four facilities. For advanced packaging, the projects include the AP8 plant in Tainan (acquired from Innolux), the ongoing CoWoS capacity expansion in Taichung, and investments in CoWoS and SoIC advanced packaging in Chiayi, collectively adding up to three more facilities.

Overseas, TSMC is simultaneously advancing projects in the U.S., Japan, and Europe, as the report notes. In Japan, TSMC plans to begin construction of its second Kumamoto fab in Q1 2025, with mass production targeted for 2027. In the U.S., the construction project in Arizona will continue, while in Germany, the construction of a new fab in Dresden is progressing.

The report indicates that from 2022 to 2023, TSMC constructed an average of five facilities per year. In 2024, the company plans to build seven facilities, including three fabs, two packaging plants, and two overseas projects.

TSMC has previously stated during its annual technology forum that its capacity expansion efforts, both domestically and abroad, are aimed at meeting and supporting customer needs, as the report notes.

Read more

• [News] TSMC’s First Plant in Arizona Achieves Early Chip Production Yields Higher than Taiwan’s
• [News] TSMC Took Another Step in Advanced Process Expansion

(Photo credit: TSMC)