November 19, 2024 /SemiMedia/ — Taiwan Semiconductor Manufacturing Co (TSMC) is accelerating its global expansion, aiming to have a total of 10 new and ongoing fab projects by 2025. This marks a first for the company and sets a new record for the semiconductor industry, boosting TSMC’s capital expenditure growth outlook.

Capital expenditure forecast and global expansion

Industry sources estimate TSMC’s capital expenditure for 2025 to be between $34 billion and $38 billion, potentially setting a new high.

Taiwan region at the core of expansion

Of the 10 fabs planned for 2025, seven are located in Taiwan. These projects cover advanced wafer fabrication and advanced packaging facilities, including:

  • 2nm production sites: Two fabs each in Hsinchu and Kaohsiung, totaling four facilities.
  • Advanced packaging plants: The AP8 fab in Tainan (acquired from Innolux), CoWoS expansion in Central Taiwan Science Park, and CoWoS and SoIC investments in Chiayi, comprising three facilities.

Projects in the U.S., Japan, and Europe

Beyond Taiwan, TSMC is also advancing fab projects in the U.S., Japan, and Europe:

  • Kumamoto Fab 2 in Japan: Construction is set to begin in Q1 2025, with mass production targeted for 2027.
  • Fab 21 in the U.S.: The second fab is under construction.
  • New fab in Dresden, Germany: The project focuses on specialty processes and is progressing as planned.

Record-breaking expansion

Data shows TSMC averaged five new fabs annually between 2022 and 2023, with seven fabs planned for 2024. The total number of fabs under construction or planned for 2025 will reach 10, setting a record for both the company and the global semiconductor industry.

TSMC’s response on capital expenditure

In response to inquiries about 2025’s capital expenditure, TSMC stated that the company has not yet disclosed its detailed plans, with further information to be announced later.