Taiwan Semiconductor Manufacturing Co. confirmed it will break ground on its cutting-edge 1.4-nanometer fabrication plant in the fourth quarter, with production value now projected to reach NT$500 billion ($16.49 billion) — up from an earlier estimate of NT$485.7 billion ($16 billion).
The Central Taiwan Science Park facility will employ approximately 4,500 workers across four planned manufacturing units, according to park administration director Xu Maoxin. TSMC plans to start volume production of 2-nanometer chips next quarter at fabs in Hsinchu and Kaohsiung, and produce 1.6-nanometer chips in the second half of next year at southern facilities.
The 1.4nm project represents TSMC’s latest move to cement its technological leadership as competitors stumble. Intel has been whispering about scrapping its A14 process entirely, while Samsung has pushed back its own 1.4nm mass production to 2029, leaving TSMC with minimal competition in the most advanced chip manufacturing.
Land acquisition for the Central Taiwan expansion completed in June, with public infrastructure work already underway. The first 1.4nm facility targets risk production by 2027 before full-scale manufacturing begins in late 2028.
TSMC’s dominance has pushed integrated circuit production to 83% of Taiwan’s science park revenue, while the company posted 37.1% year-over-year revenue growth through August 2025. The expansion reflects surging artificial intelligence chip demand that shows few signs of cooling.
