TSMC Begins Construction on $48.5 Billion Chip Fabrication Facility for Cutting-Edge 1.4nm Process Technology

TSMC has unveiled its latest state-of-the-art semiconductor manufacturing facility in Taiwan, poised to lead the charge in the production of the revolutionary Angstrom-era A14 (1.4nm) technology.

Investing Heavily in Innovation: TSMC’s A14 Facility in Taiwan

The Taiwanese semiconductor giant has demonstrated remarkable progress in technological advancements. While still advancing with its 3nm node production, TSMC is already laying the groundwork for the next leap with its 1.4nm node. As reported by the Taiwan Economic Daily, construction for this facility has formally commenced in Taichung, with an estimated investment of approximately $48.5 billion. The facility is expected to begin operations by 2028, marking a significant milestone in TSMC’s trajectory.

Interestingly, the original plan for this facility was to develop a 2nm manufacturing plant. However, TSMC has pivoted its focus, now aiming to reach Angstrom-era production levels. This strategic shift is motivated by the decision to enhance its 2nm production capabilities in the US, primarily in response to surging demands from high-performance computing (HPC) and mobile sectors. TSMC’s strategy involves focusing on cutting-edge technology in Taiwan while optimizing older node production in its overseas plants to fulfill client requirements.

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The upcoming 1.4nm facility will consist of four separate fabs, with the inaugural one slated to become operational by late 2027, projected to achieve initial production figures of approximately 50, 000 wafers. The A14 node promises to be particularly noteworthy since it will utilize complex multi-patterning techniques rather than the anticipated High-NA EUV lithography. This decision stands in contrast to competitors like Intel, which is set to adopt advanced lithography methods for their 14A node, adding an intriguing competitive dynamic to the semiconductor landscape.

Demand for the A14 node is expected to be robust, driven significantly by major players such as Apple, Qualcomm, and MediaTek, as well as other mobile technology customers. Additionally, clients in the HPC market, including NVIDIA and AMD, are likely to leverage this advanced node for their next-generation AI architectures, further solidifying TSMC’s pivotal role in driving technological progress in the semiconductor industry.

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