Taiwan Semiconductor Manufacturing Company (TSMC) has decided to add another 3-nanometre (3nm) semiconductor fabrication plant in Tainan, Taiwan, with volume production scheduled for the first half of 2028.
Chief executive C.C. Wei confirmed the decision during the company's third-quarter 2026 earnings call on 15 October, citing strong customer demand.
“Driven by the strong demand from our customers, we have decided to add on additional 3-nanometer fab in Tainan, volume production is scheduled for the first half of 2028,” Wei said.
Tainan expansion adds to existing 3nm plans
The additional facility will follow another 3nm fab in Tainan Science Park, where TSMC expects volume production to begin in the first half of 2027.
The company's expansion in the park builds on its existing semiconductor manufacturing footprint, including Fab 18, where TSMC began construction to support its advanced process technologies.
TSMC is also expanding its 3nm manufacturing capacity internationally, with developments under way in the United States and Japan.
In Arizona, the company has completed construction of its second fab and is installing manufacturing equipment. Volume production is scheduled to begin in the third quarter of 2027, ahead of its previous timetable. The project forms part of a wider US expansion, which includes an additional US$100bn investment in its Arizona semiconductor manufacturing campus.
In Japan, TSMC plans to introduce 3nm technology at its second fab, with volume production scheduled for 2028.
The company is also converting 5nm manufacturing equipment to support 3nm capacity in Tainan, alongside productivity improvements and more flexible capacity across its 7nm, 5nm and 3nm process technologies.
AI demand drives investment in advanced manufacturing
During the earnings call, Wei outlined plans to build 13 leading-edge and advanced packaging fabs in Taiwan over the coming years, alongside another five to six fabs overseas.
TSMC reported third-quarter revenue of $46.7bn, up 16.2% sequentially. Its 3nm process technology accounted for 33% of wafer revenue, while technologies at 7nm and below collectively represented 79%.
CFO Wendell Huang said capital expenditure between 2026 and 2028 was expected to be significantly higher than in the preceding three years, reflecting continued investment in manufacturing capacity.
TSMC has not disclosed the investment value, size or detailed construction schedule for the additional Tainan fab.
