Taiwan’s National Applied Research Laboratories (NARLabs) is set to invest NT$79.76 billion (US$2.5 billion) over four years (2025–2028) to establish a 12-inch semiconductor manufacturing research facility under its Taiwan Semiconductor Research Institute (TSRI), according to Commercial Daily News on February 5. The initiative aims to strengthen Taiwan’s semiconductor talent pipeline and aligns with the government's "Taiwan Chip-based Industrial Innovation Program" and Greater Silicon Valley (Hsinchu-Taoyuan-Miaoli) Development Plan. The project is scheduled to begin in 2025.
TSRI currently operates three research centers in Hsinchu and Tainan, with its Tainan facility launched in 2020. However, space constraints at its Hsinchu site have necessitated expansion. The new advanced process R&D facility will be built to industry standards, featuring a state-of-the-art cleanroom to support academic and industrial research collaborations. The region, which accounts for 50% of Taiwan’s semiconductor output, also benefits from a strong talent pool at National Yang Ming Chiao Tung University and National Tsing Hua University.
The USD 2.5 billion investment will fund planning, land acquisition, construction, and facility development. In 2025, an initial NT$4 billion (USD130 million) will be allocated for design, land procurement, construction, and public art installations. The facility is expected to complete its design phase by the end of 2025, break ground in 2026, and begin trial operations in 2028, with full-scale operations targeted for 2029.
According to the Taipei-based research institute Market Intelligence & Consulting Institute (MIC), data centers, wireless communications, automotive electronics, and other applications are expected to drive semiconductor market growth through 2023.