Taiwan Semiconductor Manufacturing Company (TSMC) is currently executing the most aggressive capital expenditure and infrastructure expansion program in its history. Driven by an insatiable demand for High-Performance Computing (HPC) and Artificial Intelligence (AI) applications, the company has transitioned from a Taiwan-centric manufacturing model to a globally distributed “Giga-fab” strategy. This research outlines the current projects in progress and the strategic pipeline through 2030.
Table of Contents
I. Domestic Dominance: The Taiwan Expansion
Despite its global diversification, Taiwan remains the epicenter of TSMC’s most advanced technology development. The company is currently building or planning 11 new wafer fabrication plants (fabs) and four advanced packaging facilities within Taiwan to maintain its technological sovereignty.
Advanced Node Clusters
- Hsinchu (Baoshan): This site serves as the primary hub for the 2nm (N2) node. Multiple phases of Fab 20 are under construction, with volume production slated for the second half of 2025.
- Kaohsiung (Nanzi): Originally planned for mature nodes, this site has been repurposed for advanced 2nm production to meet surging AI demand. At least three fabs are currently planned for this science park.
- Southern Taiwan Science Park (Tainan): TSMC is expanding its 3nm (N3) capacity here and has recently announced plans for three additional 2nm fabs, potentially bringing the total 2nm site count to ten across Taiwan.
- Taichung: The company broke ground on its first 1.4nm (A14) fab in late 2025, with a target for volume production in 2028.
Advanced Packaging Pipeline
To address bottlenecks in AI chip delivery, TSMC is tripling its CoWoS (Chip-on-Wafer-on-Substrate) capacity. New packaging facilities are being established in Chiayi and Miaoli (Zhunan) to integrate logic chips with HBM (High Bandwidth Memory).
II. North American Footprint: The Arizona Megafab
TSMC’s investment in Phoenix, Arizona, has grown to a staggering $165 billion, representing the largest foreign direct investment in U.S. history. The goal is to create an independent ecosystem capable of producing 30% of the company’s most advanced chips on U.S. soil.
| Facility | Node Technology | Status / Timeline |
|---|---|---|
| Fab 21 Phase 1 | 4nm (N4) | Volume production commenced Q4 2024 |
| Fab 21 Phase 2 | 3nm (N3) | Construction complete; production accelerating for 2025 |
| Fab 21 Phase 3 | 2nm / A16 | Ground broken April 2025; target production 2027 |
| Phases 4-6 | Sub-2nm / Advanced | Pipeline; potential conversion of Phase 6 to packaging |
Beyond wafer fabrication, the Arizona site will include two advanced packaging plants and a major R&D center, effectively replicating the “trinity” of TSMC’s Taiwan-based operational model.
III. International Expansion: Japan and Europe
TSMC’s international strategy focuses on “specialty technologies” tailored to the automotive and industrial sectors, alongside local government incentives.
Japan (JASM)
The Kumamoto cluster (JASM) has been TSMC’s most successful overseas venture to date in terms of construction speed. The first fab began volume production in late 2024 (12nm to 28nm). Construction on the second fab, which will produce 6nm and 7nm chips, is currently underway with a production target of 2027. Local infrastructure challenges have caused slight delays, but the project remains a cornerstone of TSMC’s automotive supply chain.
Germany (ESMC)
In Dresden, TSMC has commenced construction of its first European fab under the European Chips Act. This facility will focus on 12nm to 28nm specialty technologies for the European automotive and industrial markets. Mass production is currently targeted for late 2027.
IV. Future Technology Pipeline: Beyond 2nm
The company’s R&D pipeline is focused on extending Moore’s Law through new transistor architectures and materials.
- N2 and N2P (2025-2026): The introduction of Nanosheet (GAA) transistors, replacing the FinFET architecture.
- A16 (2026): This node will introduce the “Super Power Rail,” a backside power delivery solution that significantly improves power efficiency for AI data centers.
- A14 (2028): Utilizing second-generation nanosheets, this node targets a 15% performance increase over N2.
- System-on-Wafer (SoW): A shift in the pipeline toward 3D stacking and “wafer-level” integration, where the entire wafer acts as a single, massive compute engine.
V. Strategic Outlook and Capital Allocation
TSMC’s 2025 capital expenditure is projected to reach up to $50 billion, a 20% increase from the previous year. Approximately 70-80% of this budget is allocated to advanced nodes (2nm and below), with the remainder focused on advanced packaging and specialty technologies. The company’s long-term roadmap aims for net-zero emissions by 2050, with a pivot toward “Green AI” tools that optimize energy efficiency during the lithography process.
This expansion ensures that TSMC remains the sole provider capable of manufacturing the world’s most advanced semiconductors at the scale required by the AI revolution.