TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Co. (TSMC) is reportedly planning to build a 2nm fab in Kaohsiung.

On Sunday (July 16), UDN cited sources as saying that in response to the "AI wave," TSMC has decided to build a 2nm fab instead of a 28nm one in Kaohsiung. The move is aimed at synchronizing the advancement of cutting-edge technology across Taiwan.

UDN claimed the completion of the cleanroom and overall electromechanical engineering at the Hsinchu fab and the Kaohsiung plant will be approximately one month apart in order to facilitate the installation of equipment. Mass production at the plants is reportedly planned for the second half of 2025 and that the relevant construction plans will be announced in the near future.

Regarding UDN's report on the Kaohsiung fab, TSMC is currently observing a pre-earnings quiet period and did not make any comment.

TSMC has reportedly finalized the Kaohsiung 2nm facility with the Ministry of Economic Affairs and the Kaohsiung City Government. The company has allegedly requested the government provide assistance in ensuring sufficient water and power supplies for the fab.

As TSMC's 2nm process will require more power-intensive extreme ultraviolet (EUV) lithography equipment compared to its 3nm process, the company's decision for the Kaohsiung plant may require a reevaluation of the environmental impact.