TSMC to Construct Seven New Plants in 2024: 3X Production Capacity of 3 nm Process

"The production capacity of TSMC's three-nanometer process is expected to triple this year compared to 2023 due to robust demand,"

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.

Image Credit: CNA

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.

Kumar Priyadarshi
Kumar Priyadarshi

Kumar Priyadarshi is a prominent figure in the world of technology and semiconductors. With a deep passion for innovation and a keen understanding of the intricacies of the semiconductor industry, Kumar has established himself as a thought leader and expert in the field. He is the founder of Techovedas, India’s first semiconductor and AI tech media company, where he shares insights, analysis, and trends related to the semiconductor and AI industries.

Kumar Joined IISER Pune after qualifying IIT-JEE in 2012. In his 5th year, he travelled to Singapore for his master’s thesis which yielded a Research Paper in ACS Nano. Kumar Joined Global Foundries as a process Engineer in Singapore working at 40 nm Process node. He couldn’t find joy working in the fab and moved to India. Working as a scientist at IIT Bombay as Senior Scientist, Kumar Led the team which built India’s 1st Memory Chip with Semiconductor Lab (SCL)

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