Rumors Emerge of Taiwan TSMC's Plan to Expand 1-Nanometer Semiconductor Factory Falling Through

The world's largest foundry (semiconductor contract manufacturing) company, TSMC, is reported to have abandoned its plan to expand a 1nm (nanometer, one billionth of a meter) semiconductor factory in northern Taiwan.

[Image source=Reuters Yonhap News]

According to Taiwanese media on the 15th, the Residents' Countermeasure Committee opposing the third phase expansion construction of the Longtan Science Park in Taoyuan, northern Taiwan, stated on Facebook on the 13th that "At a meeting attended by the Hsinchu Science Park Administration, TSMC, and the Residents' Committee, the TSMC representative expressed sympathy for the local residents who want to protect the land and homes in the Longtan area and said they decided to abandon the factory expansion plan included in the expansion construction plan."

However, the Hsinchu Science Park Administration reportedly rejected the Residents' Committee's request to withdraw the project, citing that there are companies that still need the site, according to the media. The administration plans to gather as many opinions as possible, including re-evaluating the demand for the project site for industrial development and the rights and interests of local residents. TSMC stated that it cannot comment on the Longtan Science Park development plan as it is scheduled to announce its Q3 earnings on the 19th.

The Taoyuan City Government plans to continue promoting the third phase expansion construction project of the Longtan Science Park by exploring various possibilities together with the administration, considering both residents' rights and economic development.

A researcher from the Industrial Technology Research Institute (ITRI), a Taiwanese government research institution, International Strategy Development Office for Industry and Science and Technology, observed that the 'factory expansion abandonment rumor' is related to the fact that the latest manufacturing processes in the market next year will mainly focus on 3nm. Experts predict that since the company has not presented a clear blueprint regarding the 1nm manufacturing process, there is no urgency related to the site selection.

Meanwhile, TSMC founder Chang Jung-mou stated at the TSMC sports event held at Hsinchu Gymnasium the previous day that due to geopolitical political trends, TSMC's future competitive environment will not be easy and will face more challenges.