On May 23, at the 2024 Technology Forum, senior director Huang Yuanguo of TSMC’s Fab 18B announced that due to the insufficient expansion of 3nm capacity to meet market demand, TSMC plans to build seven factories worldwide this year.
It is reported that TSMC began mass production of its advanced 3nm process in 2023, with a yield rate comparable to the N4 process at the same stage, and current capacity continues to expand, but it still cannot meet customer demand.
1. Strong Market Demand: TSMC Plans Seven Factories
Huang Yuanguo stated that in response to strong demand for high-performance computing (HPC) and smartphones, TSMC will continue to actively expand production this year and plans to build seven factories. The 3nm process capacity is expected to increase threefold compared to 2023.
As the world’s largest wafer foundry, TSMC has never been hesitant to invest in building and expanding factories. From 2017 to 2019, it built two factories annually. In recent years, TSMC has continued its global layout, increasing its factory construction frequency, with six factories built in 2020, seven in 2021, three in 2022, and four in 2023.
According to Huang Yuanguo, TSMC plans to build seven factories this year, including five wafer fabs and two advanced packaging plants.
In terms of wafer fabs, the two 2nm fabs in Hsinchu (Fab 20) and Kaohsiung (Fab 22), Taiwan, will begin mass production next year; three fabs are planned in Arizona, USA, with the first one expected to begin production next year, the second in 2028, and the third, also under planning, will use 2nm or more advanced processes, expected to start production in 2028; additionally, TSMC is building two fabs in Kumamoto, Japan, with one set to start production at the end of this year and the second in 2027.
As for the two advanced packaging plants, they are located in Taichung (AP5) and Chiayi (AP7), Taiwan, with the former expected to provide CoWoS packaging next year, and the latter to mass produce CoWoS and SoIC in 2026.
Notably, besides TSMC, other international giants such as Powerchip, Intel, Samsung, UMC, GlobalFoundries, Renesas Electronics, Rapidus, and Toshiba have also announced their investment and expansion plans. Recently, UMC’s expansion in Singapore and Toshiba’s construction of a power semiconductor factory in Ishikawa, Japan, have made new progress.
2. UMC’s Singapore Expansion Progresses, First Equipment Arrives
On May 21, UMC announced the arrival of the first batch of equipment for the third phase expansion of its Fab 12i in Singapore.
UMC has been operating its 12-inch fab in Singapore for over 20 years. In February 2022, UMC announced plans to expand its advanced fab in Singapore’s Fab 12i. The first phase of the new fab plans for a monthly capacity of 30,000 wafers.
UMC stated that Singapore’s Fab12i P3 will be one of the most advanced semiconductor wafer fabs in Singapore, with a total investment of $5 billion, providing 22/28nm processes. Initially planned to start mass production by the end of 2024, UMC now expects to delay mass production by six months to early 2026, to align with customer orders.
UMC previously indicated that the expanded capacity of the new fab has signed long-term supply agreements to ensure customer capacity supply after 2024.
3. Toshiba’s 12-Inch Power Semiconductor Fab Completed
On May 23, Toshiba Electronic Devices & Storage Corporation announced the completion of its new 300mm wafer power semiconductor manufacturing plant.
The completion of this plant marks a significant milestone in Toshiba’s multi-year investment plan. Toshiba will now install equipment aiming to start mass production in the second half of the 2024 fiscal year. Once the first phase is fully operational, Toshiba’s power semiconductor (mainly MOSFET and IGBT) capacity will be 2.5 times that of the 2021 fiscal year investment plan.
Toshiba stated that the use of artificial intelligence (AI) will improve product quality and production efficiency. They expect to receive funding from Japan’s Ministry of Economy, Trade, and Industry to subsidize part of the investment in production equipment.
In early 2022, Toshiba announced the construction of a new 12-inch wafer manufacturing facility at its main discrete device production base in Ishikawa, Japan (Kaga Toshiba Electronics Corporation) to expand power semiconductor capacity, with a total investment of 100 billion yen, expected to start production in March 2025.
Toshiba noted that the construction of this 12-inch wafer fab (100% using renewable energy) will be divided into two phases to optimize investment pace according to market trends. The first phase production plan will start within the 2024 fiscal year. Once the first phase capacity is fully utilized, their power semiconductor capacity will reach 2.5 times that of 2021.
Currently, as the consumer electronics market gradually recovers, and with the rapid development of 5G, IoT, and automotive electronics, especially under the AI trend, market demand is expanding simultaneously, sparking a new wave of investment in the semiconductor field. According to incomplete statistics from Global Semiconductor Observation, there are currently more than 40 operating wafer fabs in mainland China, with over 30 more planned.
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- Micron Begins HBM Memory Packaging Factory in Singapore
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