With an investment of $49 billion, TSMC plans to start construction of its new fab facilities, aiming for mass production of 1.4nm chips by late 2028.
TSMC is set to begin constructing a new chip fabrication plant for its 1.4 nm or A14 chips on November 5. The company has completed its planning and bidding process and aims to begin mass production in H2 2028.
The investment stands at about $49 billion and is projected to generate up to 10,000 jobs. Once the production starts, the plant could add roughly $15.9 billion in annual output. The plant expands TSMC’s advanced manufacturing capacity for chips that power artificial intelligence data centres and high-performance computing systems.
Initially, the plan is to build four fabrication plants in two phases, intended for 1.4 nm and 1nm chips production. But TSMC prioritise 1.4 nm chips over faster transitions to 1 nm chips. The upcoming fab uses the existing Extreme Ultraviolet Lithography (EUV) machine with a 0.33 aperture, combining with the multi-patterning method that balances cost and production stability.
This move comes as global competition in advanced chip-making grows tighter. NVIDIA and SoftBank are backing Intel in designing 1.4 nm chips, while Samsung is accelerating the development of 1.4 nm chip production. Each generation of fab requires greater precision, higher costs and longer validation cycles as the chip’s size approaches physical limitations.
TSMC is planning to deploy more than 30 EUV machines by 2027 in preparation for 1.4 nm chip production. Preliminary estimates suggest that the combined monthly A14 production capacity could reach 110,000 to 120,000 wafers, indicating continued strong market demand.
