Taiwan foundry (semiconductor contract manufacturing) corporations TSMC has resumed a site preparation project for next-generation semiconductor production after about three years, according to reports.
On the 4th, Taiwanese media including the United Daily News, citing sources, reported that TSMC is reviving its construction plans as shortages of chips related to artificial intelligence (AI) and high-performance computing (HPC) worsen. The sources said TSMC is moving again on the third-phase expansion project at the Longtan Science Park, which had been effectively halted due to opposition from a self-help association in 2023, to address a global situation in which AI-related supply cannot keep up with demand. The self-help association is similar in nature to a residents' countermeasures committee in Korea.
TSMC plans to invest 500 billion–600 billion Taiwan dollars (about 23.2 trillion–27.9 trillion won) at the third-phase site of the Longtan Science Park to produce next-generation angstrom (Å, one ten-billionth of a meter)-class semiconductor chips. The site will expand from the initially planned 88 hectares to 104 hectares.
Another source said the move is related to the Taiwan government's investment of 100 billion Taiwan dollars (about 4.6 trillion won) by 2027 in the Taiwan version of Silicon Valley under the "Taoyuan-Hsinchu-Miaoli Greater Silicon Valley plan," a campaign pledge by Taiwan President Lai Ching-te.
Hu Szu-min, Director General of the Hsinchu Science Park Administration, which oversees the northern Longtan Science Park, said the stance of residents who had opposed the project has changed, and a public hearing on the project was recently held. He added that in May, after submitting and reporting the detailed plan to the National Science and Technology Council (NSTC) and passing the review, it will be reported to the Executive Yuan (cabinet).
Earlier, President Lai said last year that by pushing the "AI New Top 10 Constructions," Taiwan would generate production inducement of 15 trillion Taiwan dollars (about 699.7 trillion won) by 2040 and create 500,000 AI jobs. He also said Taiwan would become one of the world's top five computing powers and an "island of AI" through the complete establishment of the AI ecosystem.