tsmc leaps ahead with 1.4nm chip fab

2025-09-02 tsmc

Taichung, Tuesday, 2 September 2025.
tsmc is forging ahead in the semiconductor race. The company will begin building its 1.4nm fabrication plant in taichung next month. Known as fab 25, the facility will house four dedicated fabs. Production is slated to begin in late 2027, targeting 50,000 wafers per month. This a14 node promises significant performance and efficiency gains. It could increase performance by 15% or reduce power consumption by 30% compared to its predecessor.

fab 25 details

The new fab, a $49 billion investment, will be located in the Central Taiwan Science Park near Taichung City [2]. Land transfer, water systems, and environmental preparations are nearing completion [1]. Construction is scheduled to commence in October [1]. The first fab, P1, is expected to begin trial production by late 2027 [1][2]. Mass production should follow in the second half of 2028 [1][2]. All four fabs will be dedicated to the 1.4nm process, with a combined output of 50,000 wafers per month [2].

a14 technology

The 1.4nm process, known as A14, marks a significant technological leap [1]. It introduces second-generation gate-all-around (GAA) nanosheet transistors [1]. The A14 node is projected to deliver a 20% increase in transistor density [1][2]. TSMC anticipates up to 15% higher performance at the same power level as the 2nm process [1][2]. Alternatively, it could achieve 25% to 30% lower power consumption at the same performance [1]. The company will continue using existing EUV lithography tools [1].

market leadership and competition

TSMC’s move reinforces its dominance in advanced chip manufacturing [1]. The company held a 70% market share in global foundry revenue in the second quarter of 2025 [7]. This revenue reached a record $41.7 billion [7]. Meanwhile, competitors like Intel face challenges in catching up [4]. Intel’s capital expenditure budget of $18 billion pales in comparison to TSMC’s $38-42 billion [4]. TSMC is reportedly ahead of schedule with its 2nm process as well [4]. TSMC’s advanced process wafer prices are expected to increase by 5-10% next year [4].

stock implications

The construction of Fab 25 signals TSMC’s commitment to long-term growth [1]. The $49 billion investment demonstrates confidence in future demand for advanced chips [2]. The A14 process is expected to support the next wave of high-performance, energy-efficient chips [1]. Major technology companies are likely to be early adopters [1]. While capital expenditures are substantial, analysts estimate that the four fabs could support $2.5 trillion in downstream electronics revenue over five years [6]. This move could positively influence investor confidence in TSMC (TSM:NYSE).

Bronnen

TSMC 1.4nm