TSMC targets 2028 completion for new Tainan fab amid AI-driven expansion

Taiwan Semiconductor Manufacturing (TSMC) aims to complete a new fabrication plant in Tainan by 2028 as part of an aggressive capacity expansion driven by global demand for artificial intelligence chips. According to a report by Focus Taiwan, the world's largest contract chipmaker submitted development proposals for public review on February 12 as part of the mandatory environmental impact assessment process.

The project is situated on a 15.46-hectare site within Development Block A of the Tainan Science Park. TSMC planning documents indicate that construction is expected to begin later this year. The company expects "project completion and occupancy permits slated for 2028" following the conclusion of the environmental review phase.

A committee meeting to discuss the assessment is scheduled for March 26, following the end of a 20-day public notice period on Wednesday.


The facility layout allocates approximately 8 hectares for production facilities and related equipment. An additional 0.7 hectares will house administrative buildings, offices, meeting rooms, a cafeteria, and parking areas. The company designated 3.2 hectares as green space, while the remaining 3.56 hectares serve as infrastructure for roads and disaster prevention.

"Roughly 3.2 hectares will be set aside as green space, with the remaining 3.56 hectares designated for roads and disaster prevention infrastructure," the report noted.

"TSMC did not specify whether the Tainan facility will produce chips using its 2-nanometer (2nm) process technology. The company is already building 2nm fabs in Hsinchu and Kaohsiung and planning an A14 process facility in Taichung," the report said.

The expansion into Tainan follows a broader trend of increasing domestic manufacturing capabilities to meet the requirements of the AI sector.

Once operational, the new fab is expected to create "about 1,400 direct jobs and support around 500 additional positions for contractors and supply chain partners," the report attributed TSMC.