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TSMC to begin construction of 1.4nm production line with $49 billion investment

TSMC will begin preliminary construction of a 1.4nm chip production line in Taiwan's Central Science Park with a $49 billion investment, creating 8,000-10,000 jobs. The first fab is set for mass production by late 2028, aiming to become the world’s largest hub for AI and HPC chips.

Key points

  • TSMC is investing $49 billion in a new 1.4nm chip production line.
  • Preliminary construction starts on November 5 after completing the foundation work bidding.
  • The first of four fabs will begin mass production in late 2028.
  • The project aims to create 8,000-10,000 jobs in Taiwan.
  • The new facility may become the largest production hub for AI and HPC chips globally.

Why it matters

  • The investment aligns with the increasing demand for AI and high-performance computing (HPC) technologies projected to surge by 2025.
  • Similar trends are seen in other semiconductor companies expanding capacities due to global chip shortages.
  • This project reflects TSMC's response to competitive pressures in the semiconductor industry as tech innovations evolve.

TSMC's investment in cutting-edge chip technology marks a significant milestone in semiconductor advancements, positioning it as a leader in AI and HPC chip production amid rising global demand.