TSMC to Plan Four 1.4nm Fabs, Mass Production by 2028

TSMC is reportedly gearing up to build four new fabs dedicated to A14 (1.4nm) wafer production. Although full-scale production isn't expected until the second half of 2028, the project marks a major step toward next-generation semiconductor manufacturing and is projected to create 8,000–10,000 new jobs in Taiwan.

According to reports, TSMC has submitted a land lease proposal to the Central Taiwan Science Park for its A14 production plan, with the Taichung F25 site serving as the main base. The company plans to invest NT$1.5 trillion (around US$49 billion) to build the four fabs. One of the plants is expected to begin trial production by the end of 2027, with mass production scheduled for late 2028.

Each fab is expected to generate over NT$500 billion (US$16.26 billion) in annual revenue once operational. If all four run at full capacity, total yearly revenue could exceed US$65 billion.

The A14 facility, designated as “Fab 25”, will be the first new project in the second expansion phase of the Central Taiwan Science Park. Phase one already received construction permits for a main fab building, equipment utility plant, and office tower. TSMC has filed for groundbreaking approval and can start construction at any time.

Officials from the park noted that infrastructure and environmental groundwork have been completed, ensuring the project can move forward quickly. As TSMC’s Kaohsiung fab nears completion, the A14 project is expected to follow immediately, highlighting the company's global expansion strategy.

However, pushing toward the 1.4nm node comes with enormous cost challenges. Reports suggest that each 1.4nm wafer may cost up to US$45,000 to produce. Interestingly, TSMC's massive investment does not include ASML's next-generation High-NA EUV lithography tools, each priced around US$400 million. Instead, the company plans to use advanced photomask films to improve yields without relying on those ultra-expensive machines.

Apple is expected to be TSMC's first 1.4nm customer, as rumors indicate that NVIDIA currently holds exclusive access to the company's A16 (1.6nm) process. Analysts believe this huge investment may be TSMC's move to secure Apple's preorder for the first batch of 1.4nm wafers, strengthening its leadership in cutting-edge chip fabrication.