TSMC has begun building a new factory in Taichung, Taiwan, dedicated to manufacturing components using 1.4nm lithography. The report comes from the Taiwan Economic Daily, which states that the facility will cost around US$48.5 billion and is expected to start operations in 2028.
Many things could change in the next few years, but TSMC remains the largest chip manufacturer in the world, and its new Taiwan plant is expected to become the most advanced ever built.
Rapid Expansion and Global Demand
The company’s accelerated growth—both in the number of facilities and the complexity of its technologies—reflects the high international demand it receives from major clients such as NVIDIA, Apple, and AMD.
Originally, the Taichung factory was planned for 2nm chip production. However, TSMC shifted its strategy to keep its most advanced processes in Taiwan. The company aims to increase local production of cutting-edge technologies while producing older nodes in factories around the world as permissions are granted.
For example, TSMC will soon begin mass production of 2nm chips in Texas.
Currently, TSMC is still producing chips at 3nm, with several major companies already placing orders for 2nm chips that have yet to reach the market. Before moving to 1.4nm, TSMC plans to offer chips using a 1.6nm process.
The company must continue moving quickly to maintain its leading position in global chip manufacturing. The new 1.4nm plant is expected to deliver its first components by late 2027, with mass production beginning in 2028. The facility should produce about 50,000 wafers per month.
Changing Client Landscape
TSMC’s first customers for new processes are typically mobile-focused companies like Apple, Qualcomm, and MediaTek. However, the ongoing AI boom is shifting this landscape.
