Investment of 49 Billion US Dollars TSMC Plans to Start Construction of 1.4nm Fab on November 5

By Sebastian Gerstl | Translated by AI 2 min Reading Time

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TSMC begins construction of its planned 1.4 nm fabs. The groundbreaking for four new facilities in Taichung will take place on November 5, with production slated to start in the first half of 2028. Contrary to initial plans, a 1.0-nm fab will not be built for now.

Groundbreaking: As early as November 5, TSMC plans to begin construction of four new fabs that will manufacture semiconductors using the 1.4 nm technology node. Production is scheduled to start in 2028.(Image: TSMC)
Groundbreaking: As early as November 5, TSMC plans to begin construction of four new fabs that will manufacture semiconductors using the 1.4 nm technology node. Production is scheduled to start in 2028.
(Image: TSMC)

TSMC is accelerating its roadmap for the 1.4-nm process, focusing on massive expansion in Taiwan. As reported by the Economic Times in Taiwan, the groundbreaking ceremony for four new fabs is set to take place in Taichung on November 5. The total investment amounts to approximately 49 billion US dollars. The planned facilities will be built in the Central Taiwan Science Park and are expected to create up to 10,000 jobs.

Originally, it was planned to build three 1.4-nm fabs at the site along with three facilities for the upcoming 1.0-nm process. However, current market dynamics and strong demand for the upcoming 1.4-nm process have prompted the company to fully focus production in Taichung on this technology node. The planned 1-nm capacities are instead to be realized at a later date in the southern Shalun Science Park.

Production is scheduled to start in the second half of 2028, with a preliminary risk start by the end of 2027. According to local government statements, the new plant in Taichung is expected to generate up to 15.9 billion US dollars in annual revenue. This positions the site as a future global hub for AI and HPC chip manufacturing.

In terms of lithography, TSMC continues to rely on proven 0.33 NA EUV technology for 1.4 nm, combined with more complex multi-patterning processes. The use of High-NA EUV is not currently planned—due to cost structure and process maturity. Still, an increased demand for EUV systems is expected: Over 30 new EUV systems are to be procured for Taichung alone in 2027.

The expansion takes place against the backdrop of intensified competitive pressure. Intel is advancing its 18A processes in Arizona, while Samsung is investing in High-NA EUV for its 2 nm line in South Korea. Additionally, NVIDIA and SoftBank have invested in Intel to accelerate its process development—a signal to the market that TSMC does not leave unanswered.

With this move, TSMC pursues a clear strategy: to maintain its technological leadership in high-performance processors. Concentrating 1.4 nm production in Taiwan underscores its aim to combine production security and innovation dynamics at its home base. However, the international competition forces continuous adaptation—both technologically and geographically. (sg)

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