TSMC to Build Seven New Plants Amid 3nm Demand

At the 2024 Technology Forum, TSMC's Senior Vice President of Sales for Europe and Asia, Cliff Hou, announced that the global semiconductor industry, excluding memory chips, is expected to experience a 10% increase in annual sales. Hou emphasized that this period marks the "golden era of new opportunities in artificial intelligence (AI)."

In April, TSMC revised its growth forecast for the global semiconductor industry (excluding memory chips) to approximately 10%, down from an earlier estimate exceeding 10%. The World Semiconductor Trade Statistics (WSTS) organization predicts a 13.1% growth in the global semiconductor market for 2024.

TSMC anticipates a significant boost in sales, potentially reaching a 30% increase in the second quarter, fueled by the surging demand for AI applications.

Regarding capacity and new plant developments, TSMC's Senior Fab Director, Yuan-Guo Huang, revealed that the company's advanced 3nm process technology began mass production last year and has achieved yields comparable to the N4 process. Despite the expansion of 3nm capacity, market demand remains high. As a result, TSMC plans to construct seven new plants worldwide this year, including three wafer fabs and two packaging plants in Taiwan, and two additional plants overseas.

Huang highlighted that TSMC's specialized process technology in mature products is steadily increasing, projected to grow from 61% in 2020 to 67% by 2024. From 2022 to 2023, TSMC built an average of five factories per year, with plans to increase this number to seven in 2024.

In Taiwan, the new fabs in Hsinchu and Kaohsiung will focus on 2nm process technology and are progressing well with equipment installations. The Taichung AP5 site will support CoWoS (Chip on Wafer on Substrate) expansion, while the recently announced advanced packaging investment in Chiayi will be dedicated to CoWoS and SoIC (System on Integrated Chips) technologies.

TSMC's Fab 21 in the United States is expected to begin mass production in 2025, with a second facility planned to start in 2028. In Japan, the second fab outside Kumamoto is projected to commence production in 2027. TSMC's German facility is set to break ground in the fourth quarter of this year, with production slated for 2027. The Nanjing fab is also steadily increasing its 28nm process capacity. All these expansions aim to meet and support customer demand.

On the use of Extreme Ultraviolet (EUV) technology, Huang noted that since 2019, TSMC's EUV equipment count has increased tenfold, now accounting for 65% of the global total. This growth has led to significant improvements in wafer output and production efficiency.

Huang further explained that TSMC's global manufacturing and management platform operates under a "One Fab" concept, ensuring efficiency across its worldwide fabs. This platform also focuses on green manufacturing practices, localizing the supply chain, and nurturing talent across its global sites.