Taiwan Semiconductor Manufacturing Co. (TSMC) said Monday that the construction of a new factory in Kaohsiung for the production of 28-nanometer (nm) chips is ongoing, with mass production scheduled to start in 2024 as planned.
TSMC, the world’s largest contract chipmaker, made the announcement after recent speculation about the company’s capacity expansion plans in Kaohsiung, southern Taiwan.
According to industry insiders, TSMC last Friday awarded the contract for building its 28-nm fab to Futsu Construction Co., Ltd.
However, the company did not directly respond to the reports, saying only that construction of the fab has officially started following the completion of land grading.
TSMC had previously stated its intention to build 7-nm and 28-nm fabs in the new Nanzih Technology Industrial Park in Kaohsiung.
However, the chipmaker announced earlier this month it was postponing the 7-nm fab construction project in response to weak demand but said its plan to build a 28-nm fab would go ahead.
Starting in the fourth quarter of this year, the capacity utilization of 7-nm and 6-nm chips will not be as high as over the past three years, TSMC chief executive officer C.C. Wei (魏哲家) told investors in October.
Nanzih Technology Industrial Park is situated on the site of the former Kaohsiung Refinery operated by state-owned oil refiner CPC Corp., Taiwan.
In addition, TSMC also declined to comment on media reports it will replace Samsung Electronics as the manufacturer of next-generation assisted driving chips for Tesla, the world’s leading electric vehicle maker.
Source: Focus Taiwan News Channel