Largest Chip producer TSMC changes chip plant from 28nm to 2nm to cope with AI demand

The world’s largest chip production company – TSMC has changed its initial plans to build a chipset plant from 28nm to 2nm. It’s being speculated that the Taiwanese company made this decision to meet up customer demand in the AI era.

Taiwan’s United Daily News reports that TSMC changed its Kaohsiung plant construction plan from the original 28nm mature process to a more advanced 2nm process. The plant could begin mass production in the second half of 2025.

The Kaohsiung mayor has revealed to the media that TSMC notified the city government about the changes in plan at the beginning of this year. The discussion with the government includes water, electricity, and other issues, as well as environmental issues.

2nm:

The information shows that TSMC’s 2nm technology is 10-15% faster than the 3nm process. Also, the power consumption is reduced by 25-30%. The main production center of the nanometer process is scheduled in Baoshan, Hsinchu, Taiwan.

TSMC has internally decided on 20 factories (Fab 20) and plans to build four factories (P1 to P4). Currently, it is rushing to build the first factory (P1), which is expected to be completed in 2024 for risk trial production in 2025, and mass production in the second half of 2025.

In June of this year, it was reported that TSMC began to prepare for trial production of 2nm products for Apple and Nvidia. For that task, TSMC will send about 1000 R&D personnel to work at the Fab 20 wafer plant currently under construction in Zhuke.

More information about this is yet to come.

(source)