Asia Express - East Asian ICT
TSMC to Expand 28nm Production Capacity in Nanjing Fab for Nearly US$30 Billion
April 23, 2021

Taiwan-based TSMC recently approved a budget worth US$28.9 billion to double production capacity of wafers using 28nm or below processes at Nanjing fab, China, the Commercial Daily News reported on April 23. The fab is now able to monthly churn out 20,000 12-inch wafers using 12nm and 16nm processes. Following the capacity expansion plan, Nanjing plant will be able to produce 12-inch wafers based on 28nm or below process, doubling the capacity to 40,000 wafers per month. The plant is anticipated to start volume production in the second half of 2022 and produce 40,000 wafers by the mid-2023 to help TSMC tap global customers’ urgent demand for 28nm chips. Meanwhile, TSMC has raised its 2021 capex (Capita Expenditure) target to US$30 billion, 80% of which will be used to ram up its 7nm, 5nm, and 3nm processes, 10% for expansion of advanced packaging capacity, and remaining 10% for expansion of advanced and specialty technologies. TSMC plans to churn out 20,000 wafers using 5nm technology in 2024. In addition, the company is set to ramp up its 4nm process in the second half of 2021, starting volume production in 2022. As for 3nm process, the company’s Fab 18 in Taiwan has entered the fourth to sixth phases of construction with an aim produce chips in the second half of 2022. On top of that, the company has also obtained land in Hsinchu for 2nm wafer fab. Taiwan’s foundry industry’s shipment value grew from US$37.5 billion in 2019 to US$49.1 billion in 2020, up 31% year-on-year, according to MIC (Market Intelligence & Consulting Institute), a major government think tank and leading IT research institute in Taiwan. The Taiwanese foundry industry’s shipment value is anticipated to have reached US$13.9 billion in the first quarter of 2021 and rise to a new high of US$14.1 billion in the second quarter next year.