TSMC Achieves Major 1.4nm Process Breakthrough!

TSMC has reportedly made substantial progress in advancing its 1.4nm process technology. According to industry sources, the company has notified equipment manufacturers to prepare devices necessary for the 1.4nm process. TSMC plans to establish a trial production line (Mini-line) this year at the newly constructed Baoshan Fab 20 Phase 2 plant in Hsinchu. Additionally, TSMC intends to repurpose the third and fourth fabs initially designated for 2nm production at Baoshan Fab 20 to focus on 1.4nm manufacturing.

Today, TSMC held a beam-raising ceremony and groundbreaking event for the expansion of its Kaohsiung facility, which will include 2nm production capabilities. This dual-location approach, with facilities in both Hsinchu and Kaohsiung, demonstrates TSMC's commitment to retaining cutting-edge manufacturing within Taiwan. Although Hsinchu's progress appears to be ahead of Kaohsiung's, the expansion ceremony in Kaohsiung highlights the city's importance in TSMC's future strategic layout.

TSMC’s latest geopolitical-responsive blueprint has revised its original plans for the Baoshan Fab 20, adjusting the P3 and P4 fabs to focus on 1.4nm technology. Meanwhile, the Kaohsiung Fab 22 will be expanded from two planned fabs (P1 and P2) to at least three (P1 to P3) for 2nm production. The P4 and P5 fabs recently passed environmental assessments and are currently under architectural planning, licensing, and initial construction stages. Completion is expected by 2027, followed by production of advanced N2P, N2X, and A16 (1.6nm) technologies.

Furthermore, TSMC is retaining flexibility in the potential construction of a sixth fab (P6) in Kaohsiung, which remains unplanned but could be allocated for more advanced technologies in the future.

In the Central Taiwan Science Park (CTSP) Phase II, land expansion efforts have been delayed due to unresolved negotiations involving a local golf course's membership rights. Despite this, TSMC remains committed to its timeline, with groundbreaking scheduled for May this year. The CTSP Phase II expansion, now designated as Fab 25, will focus on 1.4nm production with plans to construct four fabs. TSMC aims to complete the risk trial production of the first fab (P1) by 2027 and commence mass production by the second half of 2028.

Although Fab 25's mass production timeline may be affected by land acquisition delays, TSMC's Baoshan P3 and P4 fabs are expected to achieve mass production ahead of schedule, potentially making Baoshan the first site globally to initiate mass production using the cutting-edge 1.4nm process technology.

Reports indicate that TSMC's future investments will focus on the Baoshan complex with four fabs, the Kaohsiung site with five fabs, and the Chiayi site with two advanced packaging facilities. Additionally, the CTSP expansion includes plans for four fabs, while future developments in Shalun may involve the construction of at least six advanced fabs and multiple advanced packaging facilities.

In Chiayi, TSMC also plans to enhance its advanced packaging capabilities through facility expansion and renovations of the former Innolux plant. With these developments, TSMC's total investment in Taiwan is projected to exceed $300 billion, a figure significantly higher than the $100 billion investment planned in the United States, which still lacks a concrete timeline. According to sources, TSMC's strategy continues to prioritize Taiwan for its most advanced process technologies and packaging facilities.