TSMC to build 11 fabs in Taiwan this year and next

In response to the growing demand from clients in 7nm and more advanced processes, TSMC pointed out in a technical forum held last week that 11 12-inch wafer fabs will be built in Taiwan, China from 2022 to 2023, and the Zhunan AP6 packaging plant will be expanded to support 3DIC advanced packaging requirements.

According to the TSMC Technology Forum report, a total of five 12-inch factories, including the P5 to P9 factories located in the Nanke Fab 18 factory area, have been launched, and will become the main production center of 3nm. The Fab 20 factory area tailored for 2nm is determined to be located in the Baoshan Park of Bamboo Branch. A total of three 12-inch factories, including the P1 to P3 factories, will start construction before next year, and the P4 factory is expected to start construction after 2024.

TSMC's existing 12-inch fabs include:

TSMC Headquarters and Fab 12 A, R&D Center and Fab 12 B, Fab 14, Fab 15, TSMC (Nanjing) Co., Ltd. and Fab 16, Fab 18 factory

The main force of TSMC's expansion is still advanced technology. The compound annual growth rate (CAGR) of 7nm and more advanced process production capacity from 2018 to 2022 is as high as 70%, and the 5nm production capacity in 2022 has reached four times that of the first year of mass production in 2020. .

The construction of 5 new factories will start in 2022

According to the internal planning of the wafer foundry TSMC, the five new factories in the world this year include:

The first is Japan's Kumamoto Wafer 23, which started construction in April this year. The factory is expected to be put into operation in 2024, with a total investment of about 8.6 billion US dollars, and the Japanese government supports about 40% of the cost.

The second is that the Baoshan 2-nanometer wafer 20 factory in Taiwan, China, started the land leasing process in April this year, and it is generally expected that the 2-nanometer factory will be available in June.

The third is Kaohsiung Fab 22. TSMC announced on November 9 last year that it will invest in a new plant in Kaohsiung, where it will build a 12-inch wafer fab for the production of 7-nanometer and 28-nanometer processes. The factory is expected to start construction in 2022 and mass production in 2024.

The fourth is that the 3nm of Nanke Wafer 18 will enter mass production and follow-up expansion.

The fifth is the mature process expansion of Nanjing Wafer 16 fab.

Overseas factories are two generations behind TSMC's most advanced technology

On June 8, TSMC stated at the shareholders meeting that TSMC has set aside $40-44 billion for expansion and equipment upgrades, and expects to spend more than $40 billion in these areas in 2023, in order to enable TSMC to Keep the technology fast and meet the cutting edge future needs.

There is an unwritten rule in TSMC that any factories in overseas areas are generally two generations behind TSMC's most advanced technology. At present, TSMC is about to mass-produce chips with a 3nm process and is expected to trial-produce 2nm chips in 2024, while TSMC will not mass-produce chips with a 5nm process in the United States until 2024. That said, TSMC is still sticking to this policy.