TSMC adds another 3nm fab in Tainan for 2028 production

TSMC has decided to add another 3-nanometer fabrication facility in Tainan, with volume production scheduled for the first half of 2028, the company said. Chairman and CEO C.C. Wei said strong customer demand drove the decision.

The additional facility is separate from TSMC’s already-planned 3nm fab at Tainan Science Park, which the company said remains on track to begin volume production in the first half of 2027. TSMC did not disclose the new 2028 fab’s planned investment, wafer capacity, construction start date or a more precise production date.

During TSMC’s third-quarter earnings call, Wei said wider use of agentic AI and open-source AI models was increasing demand for leading-edge silicon. Management identified AI accelerators, CPUs used for agentic AI and networking chips as contributors to that demand. The comments reflect TSMC’s assessment, not an independently established demand forecast.

TSMC said it is also converting 5nm tools to support 3nm capacity in Tainan and optimizing flexible capacity across its N7, N5 and N3 process nodes. The company’s wider financial context appears in DataPhoenix’s coverage of TSMC’s third-quarter revenue and fourth-quarter forecast. Wei said TSMC’s capacity planning considers data-center construction, power availability, financing and component supply, and that the company still assesses demand as exceeding supply.