[News] TSMC’s Advanced Process and CoWoS Expansion: Progress Unveiled

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Ahead of TSMC’s earnings call on January 16^th, the foundry giant’s capacity expansion plans remains a key focus, as the market is curious about its progress of Arizona plant and its CoWoS (Chip on Wafer on Substrate) output.

Notably, the company has reportedly seen positive progress in both areas. A latest report from Reuters hints TSMC’s 4nm production in the U.S. plant starts earlier than expected, while another Commercial Times report suggests that TSMC may add two more CoWoS advanced packaging plants in Southern Taiwan. Please read below for a quick summary of TSMC’s recent key expansion developments.

Raimondo Confirmed 4nm Production Started in Recent Weeks

TSMC’s first fab in Arizona, featuring N4 process, is anticipated to start mass production in 1H25. Notably, Commerce Secretary Gina Raimondo told Reuters that the production had started in “recent weeks,” serving the need for U.S. customers.

This marks a significant milestone, as per Reuters, while the chips manufactured in Arizona are on par in yield and quality with Taiwan.

As per TrendForce, with an initial capacity of 20K wafers per month by year-end, the facility’s early production will primarily serve U.S.-based customers, including AMD and Apple. Additionally, there are rumors that a portion of AWS’s ASIC chips will also be produced at the AZ fab.

Latest Developments of 2nm/ 1.4nm Nodes

But for now, Taiwan remains the hub for advanced node expansion, especially on 2nm and below. The Commercial Times report notes that TSMC is already constructing two N2-capable fabs in Baoshan, Hsinchu, situated in Northern Taiwan.

Its first Baoshan fab will reportedly kick off mass production in 2025, followed by the new 2nm fab in Kaohsiung, Southern Taiwan.

In terms of 1.4nm and more cutting-edge nodes, the report states that TSMC may also be gearing up, as the foundry giant is said to be securing lands for expansion. Hsinchu, Taichung, and Kaohsiung are rumored to be its primary expansion bases.

TSMC Advances CoWoS Expansion, with Taiwan as Its Main Base

On the other hand, the Commercial Times report indicates that TSMC is preparing to build a “Semiconductor Corridor” in Southern Taiwan, with several expansion investment projects gradually unfolding.

As per the report, in addition to the newly acquired AP8 Facility, which is rumored to start production in 2H25, TSMC still has two CoWoS advanced packaging facilities under construction, which are both situated in Chiayi, Southern Taiwan.

Along with that, amid the robust demand of AI boom, the foundry giant is rumored to have two more CoWoS advanced packaging plants joining the ranks in Phase 2 of the Chiayi site, the report adds.

(Source: Reuters, Commercial Times)

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(Photo credit: TSMC)