Futures

TSMC’s Ambitious Plans for 2nm Chip Production with New Fabs in Taiwan, (from page 20240128.)

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Summary

TSMC is advancing its 2nm process technology, known as N2, by constructing two new fabrication plants in Taiwan, with a third pending government approval. The first plant in Hsinchu is expected to start high-volume manufacturing (HVM) of 2nm chips by late 2025, while the second in Kaohsiung is projected to begin slightly later, around 2026. Construction of the third facility may begin in 2025 if approved, with operations potentially starting in 2027. TSMC aims to meet strong demand for its 2nm chips and plans to use advanced gate-all-around nanosheet transistors and backside power delivery technologies in its future mass production efforts. The company is positioning itself to provide substantial 2nm capacity in the coming years.

Signals

name description change 10-year driving-force relevancy
TSMC’s Expansion Strategy TSMC is constructing multiple fabs for 2nm chips, reflecting growing demand. From single fab construction to multiple fabs to meet increasing semiconductor demands. In 10 years, TSMC may dominate the 2nm market, influencing global semiconductor supply chains. The rising demand for advanced semiconductor technology from various industries. 4
Geopolitical Tensions Impacting Supply Chains Concerns about China’s influence over semiconductor manufacturing in Taiwan. From stable supply chains to potential disruptions due to geopolitical conflicts. In 10 years, supply chains may diversify further to mitigate risks associated with geopolitical tensions. Global companies are seeking to reduce dependency on Taiwan amidst rising China tensions. 5
Government Approvals for Fab Construction TSMC is awaiting government approvals for new fabs, indicating regulatory importance. From less regulatory scrutiny to a more rigorous approval process for semiconductor facilities. In 10 years, regulatory environments may significantly shape where and how fabs are built globally. Governments are increasingly involved in technology infrastructure decisions for national security. 3
Shift to Advanced Process Technologies Adoption of N2 process technology is a step towards cutting-edge manufacturing. From older manufacturing processes to advanced 2nm technology for improved performance. In 10 years, semiconductor technology may have evolved significantly with even smaller process nodes. The continuous push for more efficient and powerful semiconductor devices drives technological advancements. 4

Concerns

name description relevancy
Geopolitical Tensions and Invasion Risks The potential for military conflict between China and Taiwan, which could severely disrupt semiconductor manufacturing. 5
Supply Chain Disruptions Any military or political disruption in Taiwan could lead to significant supply chain issues for global semiconductor operations. 5
Technological Dependency The reliance on Taiwan for advanced semiconductor manufacturing raises concerns about vulnerabilities in global technology supply chains. 4
Economic Impact of Manufacturing Disruption A disruption in Taiwan’s semiconductor output could have devastating effects on the global economy, similar to past crises. 5
Environmental Concerns of New Fabs The construction and operation of new fabrication facilities may raise environmental concerns, especially in sensitive regions. 3
Complexity of Maintenance and Operations Advanced semiconductor fabrication plants require highly specialized maintenance, which may be challenging to manage in crises. 4
Military Escalation and Global Stability Increasing military tensions could threaten global stability and lead to broader conflicts, affecting international relations. 5

Behaviors

name description relevancy
Expansion of Semiconductor Manufacturing TSMC is expanding its semiconductor manufacturing capabilities by building multiple fabs for 2nm technology, indicating a strong demand for advanced chips. 5
Government Involvement in Tech Infrastructure The ongoing government approval processes for new fabs underscore the role of government in facilitating advanced technology infrastructure. 4
Global Supply Chain Diversification Discussion around the potential disruption of Taiwan’s chip manufacturing highlights the trend of companies diversifying their supply chains away from single points of failure. 5
Technological Innovation in Semiconductor Fabrication The introduction of advanced technologies such as gate-all-around (GAA) nanosheet transistors signifies the rapid pace of innovation in semiconductor fabrication processes. 5
Geopolitical Risk Awareness in Tech Investment Concerns about geopolitical tensions affecting semiconductor supply chains reflect a growing awareness of risks associated with tech investments in volatile regions. 4

Technologies

description relevancy src
A new semiconductor fabrication process utilizing nanosheet transistors for higher performance and efficiency in chip manufacturing. 5 4be308670b5c0c5a47ba2b0185459ff4
Advanced transistor architecture that improves chip performance and reduces power consumption. 5 4be308670b5c0c5a47ba2b0185459ff4
An enhanced version of 2nm technology with backside power delivery for improved efficiency in semiconductor manufacturing. 4 4be308670b5c0c5a47ba2b0185459ff4

Issues

name description relevancy
Geopolitical Tensions and Semiconductor Supply Chain The potential for military conflict over Taiwan poses risks to global semiconductor supply chains, impacting economies worldwide. 5
Government Approval Processes for Tech Manufacturing Delays in government approvals for semiconductor fabs may hinder technological advancements and production timelines. 4
Shift in Semiconductor Manufacturing Locations The global semiconductor industry is diversifying manufacturing locations, reducing reliance on Taiwan amidst geopolitical uncertainties. 4
Technological Advancements in Semiconductor Production The introduction of 2nm technology and GAA nanosheet transistors represents a significant leap in semiconductor manufacturing capabilities. 5
Economic Impact of Semiconductor Disruption Disruption in chip manufacturing could lead to significant economic consequences, comparable to past crises like COVID and crypto market fluctuations. 5
Dependency on Foreign Technology The semiconductor industry’s reliance on foreign technology and tools raises concerns about vulnerabilities in times of conflict. 4