Chip Talk > TSMC's Strategic Expansion: Building a Global Footprint with Advanced Nodes
Published May 15, 2025
TSMC's New Plant Strategy: Ramping Up Advanced Nodes
In a recent announcement, Taiwan Semiconductor Manufacturing Company (TSMC) unveiled its ambitious plan to build nine new facilities in 2025. This development, primarily oriented towards advanced 2nm and sub-2nm nodes production, is set to significantly bolster TSMC's capacity to meet surging global semiconductor demands.
TSMC’s strategic expansion involves the establishment of eight new fabrication plants (fabs) and an advanced packaging plant. Most notably, the groundbreaking Fab 25 in Taichung is scheduled to start producing chips more advanced than 2nm by 2028. This marks a significant technological progression as the semiconductor industry continues to push the limits of miniaturization and efficiency.
The expansion is not limited to Taiwan alone. TSMC is making strides in its overseas operations, with facilities now operational in Arizona and Kumamoto, Japan. These moves are in response to increasing global demand and geopolitical pressures in the semiconductor supply chain. The company’s second Japanese fab is also set to break ground soon.
Part and parcel of this expansion strategy is TSMC's focus on advanced packaging technologies. TSMC anticipates a compound annual growth rate of over 100% in its System on Integrated Chips (SoIC) capacity from 2022 to 2026. Concurrently, the growth in Chip-on-Wafer-on-Substrate (CoWoS) packaging capability is projected to surpass 80% within the same period.
These advancements are vital to TSMC's roadmap, as they represent the ability to deliver complex, high-performance computing solutions tailored for artificial intelligence (AI) and high-performance computing (HPC) markets. As big names like NVIDIA leverage TSMC’s capabilities, such synergies amplify TSMC's competitive edge.
TSMC's capacity expansions are undoubtedly economically significant, but they also carry substantial strategic implications. With the semiconductor industry being a cornerstone of national security and technological advancement, TSMC’s expansion helps to fortify Taiwan’s position as a pivotal player in global technology supply chains.
Moreover, countries harboring these new fabs stand to gain economically through job creation and enhancements in local technology capabilities—benefits difficult to overlook in the current economic climate.
However, these plans come with challenges. The semiconductor industry is capital-intensive, meaning that enormous upfront investments are required before any returns can be realized. Furthermore, global geopolitical tensions and potential supply disruptions remain pertinent threats that TSMC must navigate carefully.
In conclusion, TSMC's expansion illuminates the shifting landscapes of semiconductor production, showcasing how industry titans are adapting to future demands. As TSMC continues to expand its capabilities and reach, the global semiconductor market watches closely, aware that these decisions could well shape the industry's future trajectory.
For further details, see the original article on TrendForce.
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