February-7, 2025 — TSMC , Taiwan’s leading semiconductor manufacturer, is reportedly planning a new 1-nanometer fabrication plant in Tainan’s Shalun area. This massive facility, a Giga-Fab capable of housing six 12-inch wafer fabs, aims to leverage the existing advanced manufacturing cluster in the Southern Taiwan Science Park (STSP). Its location strategically connects to the science parks actively developed by the National Science and Technology Council (NSTC) in Chiayi to the north and Kaohsiung and Pingtung to the south, making it a cornerstone investment in the “Greater Southern Taiwan New Silicon Valley” initiative.
While TSMC stated that numerous factors influence plant location decisions and that they remain committed to Taiwan as their primary base, leaving no possibility excluded, the company’s internal designation of the Shalun plant as “Fab 25” strongly suggests its intention. The decision to invest in Taiwan’s most advanced process technology underscores TSMC’s commitment to its home country, following its overseas expansions in the US, Japan, and Germany.
TSMC’s ongoing investment in Taiwan, with a future focus on southward expansion, has been confirmed by Chairman Mark Liu. Furthermore, a mid-month board meeting in Arizona is expected to approve a new investment in Pingtung.
After withdrawing plans for a 1-nanometer fab in Taoyuan’s Longtan district, TSMC received proposals from several counties and cities. Sources indicate that TSMC was impressed by the comprehensive plans presented by the green-leaning counties of Chiayi, Tainan, Kaohsiung, and Pingtung. Kaohsiung’s proposal, in particular, focused on creating a “semiconductor S-corridor” extending the STSP southward through various science and industrial parks, culminating in the Asia Silicon Valley (ASV) and the IC design center.
The selection of Shalun for the 1-nanometer fab significantly boosts the importance of this S-corridor, attracting further investment in materials and equipment supply chains.
TSMC has reportedly requested land from the STSP administration for both 1.4-nanometer and 1-nanometer production in Shalun, indicating a six-fab plan. The initial three fabs (P1-P3) are slated for 1.4-nanometer production, with the subsequent three for 1-nanometer. However, if land acquisition in the Central Taiwan Science Park (CTSP) progresses smoothly and is prioritized for 1.4-nanometer production, the Shalun plant might instead focus on 1-nanometer and 0.7-nanometer production.
The Tainan City Government’s Economic Development Bureau responded that the STSP administration is planning a new AI ecosystem science park in Shalun to meet the demands of manufacturers, with land allocation still under development. The STSP administration clarified that the Shalun project is undergoing feasibility studies and public consultations as per regulations, with final decisions pending.
