The world’s largest chipmaker, TSMC, will complete its historic factory expansion by building a total of nine new production facilities in 2025. The company’s capital for these investments will amount to $42 billion.
TSMC is building 9 new production facilities
TSMC built three factories every year between 2017 and 2020. This number increased to five per year in the 2021-2024 period. In 2025, a total of nine new facilities, including eight wafer production factories and one advanced packaging facility, are on the agenda.
Among the facilities under construction are Fab 20 in Hsinchu, Taiwan, and Fab 22 in Kaohsiung. These two facilities are planned to start production with 2nm class N2 process technology in the second half of 2025. N2P and A16 technologies will also be commissioned in the same factories in the future.
Fab 21, located in Arizona, USA, has three separate phases. In the first phase, N3 production is being increased. While equipment installation continues in the second phase, construction of the third phase began in April 2025. Infrastructures suitable for N2 and A16 technologies are also being created in the facilities.
Investments are increasing not only due to increasing global demand, but also due to increasing production costs. The EUV lithography machines used by TSMC consist of systems supplied by ASML, each costing approximately $235 million.
Providing high resolution, sensitivity and production speed, these systems are critical for the production of physically larger chips such as artificial intelligence processors. So what do you think about this? You can share your views with us in the comments section below.
