Introduction:
Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, has announced plans to build seven new plants this year. This ambitious expansion aims to enhance TSMC’s global competitiveness amid surging demand for high-performance computing devices and smartphones.
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Expanding Production Capacity
At the TSMC 2024 Taiwan Technology Symposium, Huang Yuan-kuo, head of the FAB18 plant in Tainan, revealed that the new plants include three wafer plants and two packaging factories in Taiwan, as well as two additional wafer plants overseas. This expansion is part of TSMC’s strategy to meet the fast-growing global demand for advanced semiconductor technologies.
“The production capacity of TSMC’s three-nanometer process is expected to triple this year compared to 2023 due to robust demand,” Huang said. This significant increase underscores the company’s commitment to maintaining its leadership in the semiconductor industry.
TSMC Plants: Specialty Technology Focus
TSMC is not only expanding its production capacity but also increasing its focus on specialty technologies. The proportion of specialty technology relative to all mature processes is predicted to rise to 67% in 2024 from 61% in 2020. This shift reflects the company’s strategic emphasis on developing advanced technologies that cater to specialized market needs.
Automotive Solutions Growth
Huang also highlighted TSMC’s growing role in the automotive industry. TSMC estimates that its output of automotive platform solutions will achieve a compound annual growth rate (CAGR) of 50% from 2020 to 2024. Increasing demand for advanced automotive electronics, essential for modern vehicles, is driving this growth.
TSMC New Wafer Plants for Advanced Chips
Two new wafer plants, which have been under construction in Hsinchu and Kaohsiung since 2022, will manufacture two-nanometer chips. These state-of-the-art facilities are expected to begin mass production in 2025, positioning TSMC at the forefront of semiconductor technology.
TSMC Advanced Packaging Plants
In addition to wafer plants, TSMC is also investing in advanced packaging facilities. Construction of an advanced packaging factory in Central Taiwan began last year, with another factory in Chiayi set to start later this year. These facilities will focus on mass production of Chip on Wafer on Substrate (CoWoS) and Small Outline Integrated Circuit (SoIC) technologies by 2026. These advanced packaging solutions are crucial for integrating multiple chips into a single package, enhancing performance and efficiency.
Meeting Global Demand
TSMC’s aggressive expansion plans come in response to the escalating global demand for semiconductors. As the world becomes increasingly digital, the need for high-performance chips in devices such as smartphones, computers, and automotive systems continues to grow. TSMC’s new plants will significantly boost its production capacity, ensuring the company can meet this demand and maintain its competitive edge.
