Taiwan Semiconductor Manufacturing Sees US$67 Billion of Ongoing Construction

---

Written by Eric Funderburk for IIR News Intelligence (Sugar Land, Texas)

---

Summary

Industrial Info Resources is tracking more than US$67 billion of current construction from Taiwan Semiconductor Manufacturing Company (TSMC), with key areas including its home country of Taiwan and Phoenix, Arizona.

---

Prime Importance

In the world of semiconductors, a few names rise to top of the list for their importance in the cutting-edge computing technologies leading us into the future. These include NVIDIA, which designs the GPU chips powering the most sophisticated artificial intelligence (AI) processes, ASML, which manufactures the machines that manufactures the majority of those GPU chips, and Taiwan Semiconductor Manufacturing Company (TSMC), perhaps the most important semiconductor manufacturer in the world.

With strong demand growth from multiple sectors, TSMC is expanding its manufacturing capacity not only in its home country of Taiwan, where the company's most important fabrication facilities (fabs) are, but throughout the world in locations such as Arizona, Singapore and Germany. Industrial Info Resources data finds more than US$67 billion worth of TSMC construction is presently underway throughout the world.

Taiwan Construction

A substantial portion is being built in Taiwan--specifically for expansions of its Kaohsiung wafers plant, which was completed late last year. Initial production from the plant was expected to be about 20,000 pieces per month of 2-nanometer wafers, but this is expected to increase as TSMC pursues substantial expansion projects at the plant, the first phase of which is expected to be completed in the coming months, doubling production. Final expansion work is expected to be completed in 2028, accompanied by incremental production gains along the way. According to Industrial Info Resources data, TSMC's current construction in Kaohsiung is valued at about US$18 billion total investment. Subscribers to the Industrial Info Resources Global Market Intelligence (GMI) Industrial Manufacturing Project Database can learn more by viewing the related project reports.

Other TSMC construction underway in Taiwan includes a much smaller expansion of a wafer plant in Taichung to produce the latest 1.4-nanometer chips and a new backend fab in Chiai, valued at approximately US$6.2 billion and expected to begin operating in 2028, according to Industrial Info Resources data.

Arizona Construction

Although already underway at the time it was passed, the CHIPS and Science Act of 2022 as well as other grants and loans helped cement TSMC's move into Phoenix, Arizona, for the location of a U.S. manufacturing complex. Work on an initial fab to produce 4-nanometer chips was completed early last year, and TSMC now is constructing two additional fabs at the site, meaning another $24 billion in combined investment. TSMC is leaving open the possibility for even more expansion at its Phoenix site, which would result in hundreds of billions of dollars' worth of additional investment, although these projects remain years in the future and could be subject to changing investment strategies.

Other Construction

While TSMC's two key investment areas at the moment are Taiwan and Arizona, the company isn't neglecting other locations. Industrial Info Resources is tracking a US$11 billion grassroot fab that TSMC is constructing in Dresden, Germany, which is expected to be completed in 2028. Other on-the-ground construction includes a 1.1 million-square-foot grassroot fab in Singapore, requiring more than US$7 billion of investment and which is expected to be completed later this year. Subscribers can learn more by viewing the project reports on the Dresden and Singapore construction.

Key Takeaways

• Industrial Info Resources is tracking US$67 billion of active construction for Taiwan Semiconductor Manufacturing Company (TSMC).
• Key construction areas include locations in Taiwan; Phoenix, Arizona; Dresden, Germany; and Singapore.
• The Phoenix site potentially could receive hundreds of billions of dollars of more investment in the future.

---

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).