TSMC plans new Tainan fab by 2028 to meet surging AI chip demand

TAIWAN 一 Taiwan Semiconductor Manufacturing Co. (TSMC) is moving forward with plans to construct a new fabrication plant at the Tainan Science Park, with project completion targeted for 2028. The expansion is driven by booming global demand for artificial intelligence (AI) chips, according to company planning documents.

Construction is expected to commence later this year. Completion and occupancy permits are slated for 2028, the world's largest contract chipmaker confirmed.

Environmental review under way

According to Central News Agency, a development proposal was posted online for public review on 12 February as part of the environmental impact assessment (EIA) process. The 20-day public notice period concluded on Wednesday, 4 March. An EIA review committee meeting has been scheduled for 26 March.

Site layout and land use

The Tainan project will occupy a 15.46-hectare site within Development Block A of the Tainan Science Park. Approximately 8 hectares will be allocated for production facilities and related equipment.

An additional 0.7 hectares will be designated for administrative buildings, offices, meeting rooms, a cafeteria, and parking areas. Around 3.2 hectares will be set aside as green space, with the remaining 3.56 hectares reserved for roads and disaster prevention infrastructure.

Process technology unspecified

TSMC did not specify which process technology will be deployed at the Tainan facility. The company is already constructing 2-nanometer (2nm) fabrication plants in Hsinchu and Kaohsiung, and is planning an A14 process facility in Taichung.

Employment and economic impact

Once operational, the new fabrication plant is expected to generate approximately 1,400 direct jobs. A further 500 positions are anticipated for contractors and supply chain partners, TSMC said, without elaborating further.