Taiwan Semiconductor Manufacturing Co. known as TSMC (2330.TW) is moving forward with plans to construct another semiconductor fabrication plant at its Tainan site in the Southern Taiwan Science Park, aiming to finish the project in 2028 as worldwide appetite for artificial intelligence chips accelerates its expansion drive, Taipei Times reports.

Details of the proposal were published on February 12 for public inspection as part of the environmental impact assessment process. The 20 day consultation period concluded on March 4, and the environmental review committee is scheduled to convene on March 26. Expanding advanced manufacturing capacity is critical not only for TSMC’s long term competitiveness, but also for safeguarding Taiwan’s economic growth and strategic importance in the technology sector.

The company expects to break ground later in 2026. Construction and the necessary occupancy approvals are projected to be completed in 2028. However, TSMC has not confirmed whether the Tainan facility will manufacture chips based on its 2 nanometre technology.

Currently, the firm is developing 2 nanometre fabrication plants in Hsinchu and Kaohsiung, while also preparing an A14 process production site in Taichung.

The planned Tainan fab will occupy a 15.46 hectare plot within Development Block A of the science park. Approximately 8 hectares will be designated for manufacturing operations and equipment installation. A further 0.7 hectares will house offices, administrative space, meeting facilities, a staff canteen and parking.

Green areas will account for around 3.2 hectares of the site, with the remaining 3.56 hectares reserved for internal roads and disaster prevention systems. When fully operational, the facility is expected to generate about 1,400 direct positions and create roughly 500 additional roles across contractors and supply chain partners, according to the company.

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