[May-15-2025] – Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading semiconductor foundry, is dramatically expanding its manufacturing capacity both domestically and internationally in response to growing demand and ongoing tariff pressures. The company plans to construct nine new facilities in 2025 alone, a significant acceleration of its expansion strategy.
According to reports from CNA, MoneyDJ, and Liberty Times, the ambitious plan includes eight new fabrication plants (fabs) and one advanced packaging plant, strategically located across TSMC’s global network. A substantial portion of this new capacity will be dedicated to producing chips using 2nm and even more advanced process nodes.
Construction of Fab 25 in Taichung is expected to commence before the end of the year, with production of chips exceeding 2nm capabilities slated to begin by 2028. Furthermore, five new fabs in Kaohsiung, Southern Taiwan, will support the production of 2nm, A16, and future leading-edge nodes. This represents a considerable increase from the average of three fabs built per year between 2017 and 2020, rising to five per year between 2021 and 2024, and now projected to reach nine in 2025, according to TSMC VP T.S. Chang.
TSMC’s 2nm mass production, scheduled for the second half of 2025, will leverage Fab 20 in Hsinchu and Fab 22 in Kaohsiung, both launched in 2022, as key production sites.
The company is also aggressively expanding its overseas presence. Its Arizona and Kumamoto fabs are already operational, with a second Japanese fab set to break ground later this year. NVIDIA has already begun utilizing TSMC’s Phoenix plant for its Blackwell AI GPUs.
Meanwhile, TSMC is experiencing significant growth in its 3nm production capacity, expecting an increase of over 60% this year. Offering multiple 3nm variants (N3E, N3P, and N3X) to cater to diverse customer needs, the company has already begun shipping 3nm chips for automotive battery applications.
To meet the soaring demand from high-performance computing (HPC) and AI clients, TSMC is significantly scaling up its advanced packaging capabilities. Liberty Times reports that TSMC anticipates its System-on-Integrated-Chip (SoIC) capacity to grow at a compound annual growth rate (CAGR) exceeding 100% from 2022 to 2026, while its Chip-on-Wafer-on-Substrate (CoWoS) capacity is projected to expand by more than 80% during the same period.
This aggressive expansion underscores TSMC’s commitment to maintaining its technological leadership and meeting the ever-increasing global demand for advanced semiconductors, particularly in the face of ongoing geopolitical and economic uncertainties.
