TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Company (TSMC) and other major foundries are making significant strides to expand capacity in 2025, TrendForce reported on Monday.
According to the Semiconductor Equipment and Materials International (SEMI), the global semiconductor industry will undertake 18 fab construction projects this year, with Japan and the Americas leading with eight projects each.
SEMI stated that semiconductor production capacity is expected to grow at an annual rate of 6.6%, reaching 33.6 million wafers per month in 2025. This expansion is largely driven by demand for high-performance computing and generative AI applications.
TSMC recently began 4 nm production at its first fab in Arizona, with plans to bring its second Arizona fab online in 2028, producing chips using N2 and N3 processes. A third fab was announced in April. In Japan, TSMC’s first Kumamoto fab started mass production in December, while its second Kumamoto fab is scheduled to begin mass production in 2027.
TSMC’s Q4 2024 revenue report highlighted a new quarterly record of NT$868.46 billion (US$26.2 billion), contributing to an annual revenue high of NT$2.89 trillion.
Meanwhile, competitors Intel and Samsung are lagging behind in market share, with Samsung Foundry holding only a 12% market share in Q3 2024. Intel’s Fab 52 and Fab 62, both in Arizona, are expected to start operations in early 2025; however, delays have pushed mass production at Intel’s Ohio fab to 2027, and plans for a Penang, Malaysia fab remain uncertain.
Samsung has faced setbacks with its Taylor fab in Texas due to insufficient yields, BusinessKorea reported. Despite this, the company plans to invest US$230 billion over the next 20 years to create the world’s largest chip-making hub, Reuters noted.
Japan’s Rapidus, a relative newcomer established in 2023, is advancing its 2 nm technology. The company is building its first fab in Chitose, Hokkaido, with plans to begin production in 2027.
