February 25, 2026 /SemiMedia/ — TSMC is pushing forward with plans to build a new advanced wafer fab in southern Taiwan region, aiming to support rising demand for leading-edge chips used in artificial intelligence applications.

According to environmental review documents, the company plans to construct the facility in the Southern Taiwan Science Park’s designated Zone A. The site covers about 15.46 hectares in Tainan’s Anding District.

Under the current timeline, TSMC expects to begin detailed construction planning, permit applications and ground work in 2026, with the fab targeted to start operations in 2028. The final schedule may still be adjusted based on project progress.

Industry attention on advanced capacity has intensified as AI workloads continue to grow. Nvidia Chief Executive Jensen Huang said in January that demand for the company’s chips remains strong and that TSMC’s manufacturing capacity could more than double over the next decade.

TSMC has been steadily expanding its advanced-node footprint in recent years. Market watchers widely view the new southern Taiwan project as part of the company’s effort to ease expected tightness in 2nm supply as AI computing demand scales up.