In a surprising turn of events, Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, has announced the cancellation of its ambitious plan to build a cutting-edge chip fabrication facility in the Longtan section of Hsinchu Science Park. The decision comes in the wake of vehement protests by local residents over the government’s acquisition of privately owned land for industrial use. This represents a major setback for TSMC, as the proposed fab was poised to manufacture the company’s most advanced chips to date—groundbreaking 1.4-nanometer chips. In this blog post, we delve into the details of this development and its implications for the semiconductor industry.
The Abandoned Plan:
TSMC aimed to build an advanced chip facility in Longtan for 1.4-nanometer chips, considered a technological peak. Anticipation was building for the company’s 2-nanometer chips set for release in 2025, and Apple Inc. had already implemented the 3-nanometer chips in its latest iPhone 15 series.
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Protests and Resistance:
The proposed fab project faced a formidable challenge in the form of local residents’ protests. Longtan residents voiced their concerns primarily on environmental grounds and fiercely opposed the government’s acquisition of privately owned land for industrial use. Protesters organized several demonstrations and public actions, demanding that TSMC withdraw its plans.
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TSMC’s Official Statement:
TSMC, in its official statement, revealed that it had decided to abandon the construction of the new fab in Longtan after negotiations with local residents reached an impasse. The statement noted, “After evaluation, TSMC is no longer considering establishing a site at phase 3 of the Longtan section under present conditions.”
The proposed fab needed 158.59 hectares of land, with 90% privately owned. The land acquisition and its industrial use faced strong opposition, hindering TSMC’s plans.
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Future Prospects:
With the Longtan project now shelved, TSMC is likely to explore alternative locations for its fab factory. TSMC is committed to keeping most of its production in Taiwan. The government will help find a location for an advanced fab, and Taichung and Kaohsiung are potential options.
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Conclusion:
The cancellation of TSMC’s chip fab plan in Longtan highlights the challenges tech firms encounter during large-scale projects. The semiconductor industry eagerly awaits TSMC’s next move as it seeks to maintain its leadership in advanced chip manufacturing. The decision on the new location for the fab facility will undoubtedly have significant ramifications in the global semiconductor landscape.