tsmc's bold move: unveiling new 1nm fab plans in taiwan
Tainan, Monday, 3 February 2025.
Taiwan Semiconductor Manufacturing Co. (TSMC) is reportedly planning to build its most advanced 1nm process factory in Tainan’s Shalun area. This ambitious development will support six 12-inch factories, further enhancing TSMC’s capabilities at the Southern Taiwan Science Park. The move is seen as a strong commitment to Taiwan amidst global expansion strategies. It underscores TSMC’s intent to boost production capacities domestically, even as it has been expanding in countries like the United States, Japan, and Germany. The rumored factory, named the Wafer 25 Facility, reflects TSMC’s strategic shift towards the south, indicating a shift in focus towards the growing tech hub in southern Taiwan. This expansion could significantly bolster Taiwan’s position in the semiconductor industry, attracting more material and equipment suppliers to invest in the region.
Strategic site selection and manufacturing plans
TSMC’s plans for the Shalun facility demonstrate strategic foresight in semiconductor manufacturing. The company plans to use the initial three fabs for 1.4nm production, with the remaining three dedicated to 1nm technology [1]. If the Central Taiwan Science Park successfully allocates land, TSMC might adjust its roadmap to include 0.7nm production capabilities in the later phases [1]. This move aligns with TSMC’s commitment to maintaining Taiwan as its primary manufacturing base [1][GPT].
Market positioning and supply chain implications
The establishment of the 1nm facility in Tainan is expected to strengthen Taiwan’s semiconductor ecosystem. This development will expand the significance of the semiconductor S-corridor, a comprehensive industrial cluster extending through southern Taiwan [1]. The project is poised to attract additional material and peripheral equipment suppliers, reinforcing the local supply chain network [1]. TSMC’s decision comes as the company continues to demonstrate strong performance, with its 2nm process already preparing for mass production [5].
Regional development and economic impact
The Shalun project is part of a broader initiative to develop Taiwan’s ‘Southern Silicon Valley.’ The facility will connect with science parks in Chiayi, Kaohsiung, and Pingtung [1]. Local authorities are actively supporting this development, with the Southern Taiwan Science Park Administration planning an AI Ecological Science Park in the Shalun area to accommodate manufacturer requirements [1]. This expansion represents a significant vote of confidence in Taiwan’s semiconductor infrastructure.