TSMC to Build Another 3nm Plant in Tainan as AI Orders Pile Up

· Tech · Taiwan

Taiwan Semiconductor Manufacturing Co. said Thursday it will build another 3-nanometer chip factory in the Taiwanese city of Tainan, with production scheduled for the first half of 2028. Chief Executive C.C. Wei pointed to strong customer demand as the reason for the expansion. The move signals confidence that robust AI chip demand will last for years, even as the company continues to invest heavily in leading-edge capacity. TSMC is the world's largest contract chipmaker and a key supplier to AI accelerator designers, so its capacity decisions ripple across the semiconductor supply chain. The new fab adds to the company's 3nm output at a time when customers are competing for advanced nodes.

Why it matters：TSMC's latest 3nm capacity bet shows leading-edge chip supply is still being expanded on expectations of long-term AI demand, a signal that shapes planning across the global semiconductor supply chain.

Key points

  • The new 3nm fab will be located in Tainan, with production set for the first half of 2028.
  • CEO C.C. Wei cited strong customer demand for the expansion.
  • TSMC is the world's largest contract chipmaker and a key AI chip supplier.

Sources (original reporting)

More stories from this day