Taiwanese Minister of Economic Affairs J.W. Kuo, who was invited to visit Japan, attended a forum on August 30 organized by the Taiwan-Japan Research Institute and delivered a keynote speech. As reported by Kyodo News citing the interview with Kuo, he indicated that TSMC plans to build a third fab in Japan, but with a projected timeline after 2030.

However, Kuo emphasized that the final decision on whether to proceed with the expansion in Japan rests with TSMC, and he refrained from discussing specific site locations.

In addition, in response to Kuo’s comments, the Ministry of Economic Affairs clarified that any details regarding TSMC’s potential third fab should be confirmed with the foundry giant itself.

Reportedly, Kumamoto Prefecture Governor Takashi Kimura visited TSMC’s headquarters on the afternoon of August 26 and held talks with TSMC’s senior executives.

Notably, Takashi Kimura, who took office in April, stated in an report from Bloomberg on May 11th that he would spare no effort to persuade TSMC to establish a third fab in the region, believing that during the preparations for TSMC’s first fab in Kumamoto, the region already possesses better-quality road and water infrastructure and an education system that better supports international school students, which could be advantageous.

TSMC’s fabs in Kikuyo Town, Kumamoto Prefecture (Kumamoto Fab 1) is set to begin mass production in Q4 (October-December), utilizing 28/22nm and 16/12nm process technologies, with a monthly production capacity of 55,000 wafers.

The Kumamoto Fab 2 is scheduled to begin construction at the end of 2024, with the goal of starting operations by the end of 2027, focusing on 6/7nm processes. The combined monthly production capacity of TSMC’s Kumamoto fab 1 and 2 is estimated to exceed 100,000 wafers.

TSMC Chairman C.C. Wei mentioned in June that after the successful operation of the first and second fabs, TSMC would consider building a third fab if it receives the approval of the local residents.

Read more

• [News] TSMC Reports No Major Damage to Kumamoto Plant after 7.1 Magnitude Earthquake near Kyushu, Japan
• [News] TSMC’s Kumamoto Fab 2 Reportedly Begins Land Preparation

(Photo credit: TSMC)

TSMC is set to offer a new round of its CyberShuttle prototyping service in September. According to sources cited in a report from Commercial Times, it’s revealed that, as per usual practice, there are two opportunities each year, in March and September, for customers to submit their projects. It is indicated that the highlight this time is expected to be the 2nm process, providing leading companies with an opportunity to gain an edge.

TSMC’s 2nm technology is progressing smoothly, with the new Hsinchu Baoshan plant on track for mass production next year. Previously, there were rumors indicating that Apple is considering adopting 2nm chips in 2025, with the iPhone 17 series potentially being among the first devices to use them.

Reportedly, both TSMC’s N2P and A16 technologies are expected to enter mass production in the second half of 2026, offering improvements in power efficiency and chip density.

ASIC companies are eagerly participating in CyberShuttle this time, even though customer intentions for the first 2nm tape-out are still unconfirmed. However, this technology will likely maintain TSMC’s leadership in advanced processes, securing its future technological advantage.

CyberShuttle, also known as MPW (Multi-Project Wafer), refers to the process of placing chips from different customers onto the same test wafer. This approach not only allows for the shared cost of photomasks but also enables rapid chip prototyping and verification, enhancing customers’ cost efficiency and operational effectiveness.

Based on TSMC’s official information, the CyberShuttle prototyping service significantly reduces NRE costs by covering the widest technology range (from 0.5um to 7nm) and the most frequent launch schedule (up to 10 shuttles per month), all through the Foundry segment’s most convenient on-line registration system.)

TSMC’s CyberShuttle prototyping service also validate the sub-circuit functionality and process compatibility of IP, standard cell libraries and I/Os, reducing prototype costs by up to 90%. TSMC states that their current CyberShuttle service covers the broadest range of technologies and can offer up to 10 shuttles per month.

TSMC’s 2nm technology is expected to make its debut in September, offering opportunities for test chips.

Per the report from Commercial Times, IC design companies have pointed out that, unlike the familiar FinFET (Fin Field-Effect Transistor) structure, the industry is transitioning to the Gate-All-Around FET (GAAFET) structure, making it crucial for the market to quickly adapt.

This also allows IC design companies to provide related products to end customers, demonstrating their 2nm design capabilities.

ASIC companies have also revealed that, based on CyberShuttle data, the number of advanced process projects below 7nm is relatively small, with mature processes still dominating.

This suggests that future competition will likely focus on a few leading companies. Those who miss the first wave of 2nm technology may fall behind their competitors by up to six months, making securing a spot on the Shuttle even more critical.

Read more

• [News] TSMC Reportedly to Raise 3nm & 5nm Prices Soon, Looking to Maintain Long-Term Profit Margins 
• [News] Apple Not Adopting TSMC 2nm for iPhone 17? A19 Pro Chip Rumored to Use N3P Process

(Photo credit: TSMC)

According to a report from TechNews, after Innolux shut down its 5.5-generation plant last year, it initially planned to sell the facility to memory giant Micron. However, TSMC successfully acquired Innolux’s 4th Plant in Tainan and its associated facilities, with a transaction value of NTD 17.14 billion.

Despite this, industry sources cited by TechNews have hinted that Micron is still moving forward with plans to establish a facility in Tainan. They are reportedly negotiating with Innolux regarding the Tainan site and have begun subsequent planning.

Reportedly, it is known that Micron had previously approached AUO to inquire about the Tainan color filter fab, but this is still considered to be in the site-selection phase, with Longtan also mentioned as a possible location.

Given the high demand for Micron’s HBM products and persistent rumors about expanding in Taiwan, new facility construction seems necessary to accelerate HBM market penetration.

Additionally, Micron’s Taiwan Chairman, Donghui Lu, has publicly stated that Taiwan is a crucial part of Micron’s global advanced process and packaging strategy. Besides expanding in Taiwan and Japan, Micron is also considering further expansion in the United States.

Regarding inquiries about Micron, Innolux has stated that it does not comment on market rumors.

Industry source cited by TechNews have anticipated that Innolux’s continued reduction in capacity is expected, though the timeline for shutting down facilities remains undecided.

On August 15th, TSMC officially announced the acquisition of Innolux’s 5.5G manufacturing facility in Tainan, Taiwan, for NTD 17.14 billion.

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• [News] TSMC Acquires Innolux’s Plant in Southern Taiwan to Expand Advanced Packaging Capacity
• [News] Innolux Targets to Begin FOPLP Mass Production by Year-End

(Photo credit: Micron)

As per a report from Economic Daily News, TSMC’s first European 12-inch fab is set to hold its groundbreaking ceremony on August 20. Along with TSMC’s ongoing projects in Japan and the U.S., the investment has amounted to nearly USD 100 billion. Meanwhile, this move is also expected to generate opportunities for supporting Taiwanese contractors.

The new TSMC facility in Dresden, Germany, is anticipated to use 28/22nm planar CMOS and 16/12nm FinFET process, with a monthly production capacity of approximately 40k 12-inch wafers.

Per TSMC’s plan, its fab in Germany will start operation by the end of 2027, with estimated costs exceeding EUR 10 billion (approximately USD 10.8 billion), creating opportunities in plant equipment and engineering sectors.

In response to the demand, Marketech International, a Taiwanese fab tool maker, has already set up offices and accommodations in Dresden in 2023 and has deployed staff there.

Additionally, Topco Scientific, a Taiwanese semiconductor materials distributor, is also said to be planning to establish a presence in Europe, with plans to set up operations in Prague, Czech Republic, about two hours’ drive from Dresden.

On the other hand, TSMC is accelerating the construction of its Kumamoto plant in Japan, with production scheduled to begin by the end of this year. This facility will be the fastest among TSMC’s new overseas fabs to start production. TSMC is also actively advancing the construction of a second Kumamoto plant.

TSMC plans to invest over USD 20 billion in its two Japanese facilities, which are expected to have a combined monthly capacity of over 100k 12-inch wafers. The plants will offer 40nm, 22/28nm, 12/16nm, and 6/7nm process.

Once operational, the Kumamoto plant is anticipated to generate significant opportunities in the semiconductor inspection sector.

MA-tek, a giant in semiconductor inspection and analysis services, is planning to expand its service at its laboratories in Nagoya and Kumamoto, while setting up a third laboratory to fully meet the needs of local semiconductor clients.

As for TSMC’s fab in Arizona, U.S., the company has planned a total capital expenditure exceeding USD 65 billion. Industry sources cited by Economic Daily News have expected that companies like United Integrated Services and Marketech International will continue to benefit from this investment.

Read more

• [News] TSMC Reports No Major Damage to Kumamoto Plant after 7.1 Magnitude Earthquake near Kyushu, Japan
• [News] TSMC’s German Plant Reported to Break Ground in Weeks, Expected to Begin Production by Late 2027

(Photo credit: TSMC)

TSMC is significantly expanding its production, continuously increasing its facilities. On August 15, as per a report from Liberty Times Net, the company announced that it had signed a contract with panel manufacturer Innolux to purchase its plant and associated facilities located in the Southern Taiwan Science Park.

The building’s total area exceeds 96,000 square meters, with a transaction value of NTD 17.14 billion, which is much lower than the rumored market price of over NTD 20 billion. TSMC announced that the facility will be used for operations and production.

Innolux recently announced the sale of 4th Plant in Tainan (5.5-generation LCD panel plant). A previous report from Economic Daily News once cited rumors, claiming that both Micron and TSMC have been actively exploring the acquisition.

Moreover, it was also reported that TSMC offered a price 20% higher than the base price, with plans to use the facility to expand its advanced process or advanced packaging capacity.

According to Liberty Times Net citing sources at the Southern Taiwan Science Park, TSMC’s original plant is located in the northwest part of the park, while the newly acquired Innolux plant is situated in the southwest, so they are not adjacent.

TSMC had previously purchased a plant from Hannstar and demolished and rebuilt it, as the planning of panel plants differs from that of fabs. TSMC also acquired a plant from E-Ton Solar Tech in the Southern Taiwan Science Park, which is currently being used as an intelligent warehouse.

Based on Innolux’s post-capital-reduction share capital of NTD 79.8 billion, the sale is expected to contribute around NTD 1.84 per share in earnings.

Read more

• [News] Innolux’s 4th Plant in Tainan Reportedly to be Secured by TSMC
• [News] Innolux Confirms Sale of Tainan Plant 4, with Micron & TSMC Reportedly in the Bidding Stage

(Photo credit: Innolux)