Taiwan Semiconductor Plans 15.46-Hectare AI Fab to Boost Chip Capacity
Taiwan Semiconductor proposed a 15.46-hectare AI hardware fabrication plant in Tainan, dedicating 8 hectares to production and targeting a 2028 completion after a March 26 EIA committee meeting. The project complements 2nm and A14 fabs and follows a 37% revenue increase and 70% export surge in January.
1. Project Proposal and Timeline
Taiwan Semiconductor advanced its proposal for a 15.46-hectare fab in the Southern Taiwan Science Park in Tainan. The facility will allocate 8 hectares for production and equipment and aims to break ground later this year following a March 26 environmental impact assessment meeting, with completion set for 2028.
2. Integration with Advanced Nodes
This Tainan fab complements existing and planned 2-nanometer plants in Hsinchu and Kaohsiung as well as the A14 process facility in Taichung, reinforcing the company’s roadmap to support next-generation AI chip manufacturing.
3. Economic and Operational Impact
The project is expected to create 1,400 direct positions and 500 supply-chain roles while bolstering Taiwan's semiconductor-driven economy, following a 37% revenue jump at Taiwan Semiconductor and a 70% surge in January exports.
4. Implications for Nvidia
As a major supplier of Nvidia’s AI processors, Taiwan Semiconductor's capacity expansion will help secure long-term production capacity for Nvidia’s anticipated AI hardware demand, mitigating potential supply constraints through 2028.