TSMC to Build Two New Factories for Mass Production of 2nm Chips

The global semiconductor manufacturer, Taiwan Semiconductor Manufacturing Co. (TSMC), has announced the commencement of construction on two new leading-edge 2-nanometer (N2) chip-producing factories. Plans are also underway for a third factory, pending approval from the Taiwanese government.

During a discussion with analysts and investors, TSMC’s Chairman, Mark Liu, outlined the company’s plans and expressed confidence in initiating mass production of chips through the 2-nm process by 2025. He further emphasized the company’s intention to set up various manufacturing bases in the Hsinchu and Kaohsiung Science parks to meet increasing demand.

Factory Locations and Launch Dates

The first factory will be located near Baoshan in Hsinchu, in proximity to the R1 research center, specifically created to develop 2-nm technology. Mass production of 2-nm semiconductors is expected to begin there in the second half of 2025. Another factory producing 2-nm chips will be established in the Kaohsiung Science Park, part of the Southern Taiwan Science Park, with a planned launch year of 2026.

In addition, TSMC is actively securing permissions from the Taiwanese authorities to build another factory in the Taichung Science Park. If construction of this facility begins in 2025, it will be operational by 2027. With all three factories up and running, capable of producing chips using the 2-nm process, TSMC will significantly bolster its global market position offering clients new capacities for next-generation chip production.

Future Plans

Looking ahead, the company plans to start mass production using the 2-nm process, incorporating nanosheet transistors and circular gates (GAA), in the second half of 2025. By 2026, an advanced version of this process is projected to be introduced, potentially incorporating backside power delivery to the silicon chip, thus expanding mass production capabilities.

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