TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Company (TSMC) could be eyeing Kaohsiung for its next-gen A14 (1.4 nanometer) process, sources say.

TSMC is deploying three wafer fabs in Kaohsiung’s Nanzih Technology Industrial Park, per RTI. A source familiar with the matter said the park has space for two additional wafer fabs, P4 and P5.

Considering that there is still land available and water and electricity are sufficient, TSMC might set up fabs there, the source said.

Industrial Technology Research Institute’s (ITRI) Industry, Science, and Technology International Strategy Center consulting director Ray Yang (楊瑞臨) said TSMC’s fab construction leaders have been based in Kaohsiung for a long time. Kaohsiung’s abundant land and power supply structure position it as a prime candidate for TSMC’s A14 technology, he said.

Meanwhile, recent reports indicated that TSMC is planning to purchase panel manufacturer Innolux’s fourth fab in the Southern Taiwan Science Park, also in Kaohsiung. Sources said it is part of a strategy to develop fan-out, panel-level packaging, per UDN.