TSMC to open new Taiwan fab in 2028

TSMC plans a new fab at Tainan Science Park, targeting completion in 2028 as AI chip demand rises, according to planning documents.

The proposal was posted on Feb 12 for a 20-day public notice, which ended on March 4, 2026. An EIA review committee will meet on March 26, 2026.

Construction is due to start later this year, with completion and occupancy permits expected in 2028.

The company did not specify whether the Tainan plant will use its 2-nanometer (2nm) process technology.

The project sits on a 15.46-hectare site, allocating 8 ha to production, 0.7 ha to offices, 3.2 ha to green space, and 3.56 ha to roads and disaster prevention.

TSMC said the fab is expected to create about 1,400 direct jobs and support around 500 additional positions for contractors and supply-chain partners.

🔗 Source: Focus Taiwan

🧠 Food for thought

Implications, context, and why it matters.

This Tainan fab sits inside a wider AI manufacturing push

AI chip demand keeps climbing, and TSMC is growing capacity in Taiwan with 2-nanometer (2nm) fabs in Hsinchu and Kaohsiung plus a planned A14 process facility in Taichung.
Reports cited by TrendForce 1 say the buildout could extend beyond one site and add three more 2nm fabs in Taiwan, for an estimated total of about NT$900 billion.
The A14 facility referenced in the CNA/Taipei Times report is a 1.4-nanometer-class process facility planned in Taichung, and the report does not include a mass-production date 2.

TSMC’s growth in Taiwan collides with energy and water limits

Advanced fabs draw huge amounts of power. A prior-generation 3nm fab needed 880MW of electricity daily, close to the output of a nuclear power plant 3.
Grid pressure rises further because one estimate puts TSMC at 6.4% of Taiwan’s total electricity use, with about 84% of generation coming from fossil fuels 4.
Tainan helps on water because the Southern Taiwan Science Park has a reclaimed water plant expected to supply up to 36,000 tonnes per day by 2026, with a target to cover 60% of the company’s local demand by 2030 4.
The focus on recycling follows Taiwan’s worst drought in 56 years in 2021, when falling reservoir levels threatened chip production 4.