Taiwan Semiconductor Manufacturing Co. moved closer to expanding its sprawling chip complex in southern Taiwan after local environmental officials conditionally approved plans for two new fabrication plants.
The world’s largest contract chipmaker secured preliminary clearance for its P4 and P5 facilities at the Nanzih Technology Park in Kaohsiung, pending final modifications to be submitted by February 21. The project’s final environmental review is scheduled for March, Kaohsiung’s Environmental Protection Bureau said Tuesday.
The expansion represents the third phase of TSMC’s massive investment in the industrial park, where its P1 and P2 fabs are set to begin production this year. The company’s P3 facility already received environmental approval last year.
To address concerns about greenhouse gas emissions, TSMC committed to ambitious sustainability targets. The chipmaker plans to source 25% of its electricity from renewable energy once production begins, increasing to 60% by 2030 and reaching 100% by 2040. The company also agreed to implement a 10-year carbon offset program and exceed local requirements for pollution reduction.
The expansion comes as TSMC works to maintain its technological edge in advanced semiconductor manufacturing. The company will use recycled water for all industrial processes at the new facilities, drawing from treatment plants constructed by the Kaohsiung city government.
Environmental groups have raised concerns about the project’s impact on Kaohsiung’s emissions reduction goals. However, officials stated that after evaluating TSMC’s mitigation plans, which are expected to cut emissions by 54%, the development aligns with the city’s 2030 climate targets.
