Introduction
Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading semiconductor foundry, is accelerating its expansion plans amid ongoing tariff pressures and increasing global demand for advanced chips. According to reports from CNA, MoneyDJ, and Liberty Times, TSMC will construct nine new facilities in 2025 — including eight fabrication plants (fabs) and one advanced packaging plant — across Taiwan and overseas.
This massive buildout supports TSMC’s goal to lead the semiconductor industry into the sub-2 nanometer (nm) era by 2028, starting with Fab 25 in Taichung, Taiwan, which is set to begin construction before the end of 2025.
Brief Overview: TSMC’s 2025 Expansion and 2nm Roadmap
TSMC will build nine new facilities globally in 2025: eight fabs and one packaging plant.
Fab 25 in Taichung will start construction by year-end and aims for sub-2nm chip production by 2028.
Five fabs are planned for Kaohsiung to support 2nm, A16, and future leading-edge nodes.
2nm mass production begins in second half of 2025, mainly from Fab 20 (Hsinchu) and Fab 22 (Kaohsiung).
Overseas expansions in Arizona and Japan continue, with SoIC and CoWoS advanced packaging capacity expected to grow rapidly through 2026.
Taiwan Focus: Sub-2nm Ambitions with Fab 25 and Kaohsiung Plants
TSMC Vice President T.S. Chang revealed at the 2025 Technology Symposium that the company will push its construction pace to build TSMC nine new facilities in 2025, surpassing the average of five fabs per year built between 2021 and 2024. From 2017 to 2020, TSMC averaged three fabs annually.
Most notably, Fab 25 in Taichung is poised to become the company’s flagship site for producing chips beyond the 2nm process node by 2028. This development marks a critical step in TSMC’s technological roadmap toward sub-2nm manufacturing.
In addition, TSMC will build five fabs in Kaohsiung, southern Taiwan, aimed at producing 2nm, A16, and upcoming cutting-edge nodes. This cluster will further strengthen Taiwan’s semiconductor ecosystem and bolster local supply chains.
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Current 2nm and 3nm Production Sites
TSMC’s 2nm process is set to enter mass production in the second half of 2025, utilizing Fab 20 in Hsinchu and Fab 22 in Kaohsiung, both operational since 2022.
The 2nm node is expected to power next-generation devices that require superior performance and energy efficiency.
Regarding the 3nm node, TSMC has already been mass-producing 3nm chips for three years. According to KNEWS, the company plans to expand its 3nm capacity by over 60% in 2025 to meet increasing demand from sectors such as automotive and high-performance computing.
TSMC currently offers several 3nm variants (N3E, N3P, N3X) to serve different market needs.
Overseas Expansion and Packaging Capacity Growth
TSMC continues to expand beyond Taiwan. The company’s fabs in Arizona and Kumamoto, Japan, are now operational, with a second Japanese fab slated to begin construction later this year.
In April, NVIDIA announced it is already shipping its Blackwell AI GPUs manufactured at TSMC’s Phoenix plant.
To keep pace with demand for advanced packaging technologies like System on Integrated Chips (SoIC) and Chip on Wafer on Substrate (CoWoS), TSMC plans rapid capacity growth.
Liberty Times reports that SoIC packaging capacity will grow at a compound annual growth rate (CAGR) exceeding 100% between 2022 and 2026. CoWoS capacity is projected to expand by more than 80% during the same period.
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TSMC’s Facility Expansion Plan Summary (2025)
| Facility Location | Facility Type | Focus Technology | Construction Start | Production Target |
|---|---|---|---|---|
| Taichung (Fab 25) | Fab | Sub-2nm (>2nm) | By End 2025 | 2028 (Sub-2nm Mass Prod.) |
| Kaohsiung (5 fabs) | Fabs | 2nm, A16, Leading Edge | 2025 | Ongoing |
| Hsinchu (Fab 20) | Fab | 2nm | Operational (2022) | 2H 2025 (Mass Production) |
| Kaohsiung (Fab 22) | Fab | 2nm | Operational (2022) | 2H 2025 (Mass Production) |
| Arizona (multiple fabs) | Fabs | Advanced nodes | Operational | Ongoing |
| Kumamoto, Japan | Fab | Advanced nodes | Operational | Ongoing |
| Japan (2nd fab) | Fab | Advanced nodes | Groundbreaking 2025 | TBD |
| Packaging Plants | Packaging | SoIC, CoWoS | 2025 | Capacity Growth through 2026 |
Background: Why Expansion Matters
TSMC holds a dominant position in semiconductor manufacturing, especially for advanced process nodes. Its technological leadership enables chipmakers worldwide, from smartphone to AI and automotive sectors, to innovate.
Global tensions and tariff pressures have pushed TSMC to diversify manufacturing locations and boost capacity. This strategy mitigates supply chain risks and meets soaring demand from AI, HPC, and automotive markets.
The company’s $165 billion investment in Arizona, projected to create 12,000 jobs, reflects this global push. Its scale-up in packaging technologies addresses the increasing need for compact, high-performance chips in modern devices.
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Conclusion
TSMC ambitious plan to build nine new facilities in 2025, spearheaded by the sub-2nm Fab 25 in Taichung, signals its commitment to lead semiconductor innovation. The expansion across Taiwan and overseas, combined with rapidly growing packaging capabilities, positions TSMC to meet the future needs of AI, automotive, and mobile markets.
As chip demand grows, TSMC’s investments ensure the company remains at the forefront of next-generation semiconductor manufacturing.
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