TSMC is accelerating its domestic manufacturing expansion, with industry sources indicating that as many as ten fabs could be under construction or preparing to begin operations across Taiwan’s major science parks in 2026.

The development reflects the chipmaker’s push to scale advanced process technologies and packaging capacity amid rising global demand.

According to supply chain reports, TSMC’s current focus remains on cutting-edge nodes, including 2nm, A16 and A14. Preparatory engineering work is progressing at the P3 and P4 facilities within Fab 20 in Hsinchu Baoshan, which will serve as production bases for technologies below the 2nm level.

The company began 2nm volume production in late 2025, running concurrently at Fab 20 - located beside TSMC’s global R&D centre - and the newly completed Fab 22 in Kaohsiung. Fab 20 has now entered stable production with an estimated monthly output of between 20,000 and 25,000 wafers.

In the Central Taiwan Science Park, TSMC is developing Fab 25 as its hub for 1.4nm technology. Plans call for four fabs at the site, with piling work having started in late 2025. Risk production is expected to begin in late 2027, followed by full-scale volume manufacturing in the second half of 2028.

The region is also set to take on a central role in advanced packaging. The AP5B facility in Taichung is scheduled for completion in 2026, while construction of the AP7 P1 packaging fab in Chiayi is progressing on a similar timeline. These projects reinforce central Taiwan’s position as a key packaging production centre as next-generation chip designs require increasingly sophisticated back-end processes.

In Kaohsiung, where Fab 22 anchors TSMC’s 2nm programme, multiple construction phases are advancing in parallel. P1 entered volume production in the second half of last year, P2 has completed equipment installation and begun trial production, and P3’s structural build is largely finished. Work on P4 and P5 is also underway, with all five fabs expected to reach full operational status by the fourth quarter of 2027.

Further south, Tainan is emerging as another strategic location for advanced-node expansion. To meet surging demand for 2nm capacity, TSMC plans additional investment in the Tainan Special Zone A. If its P1 project clears environmental review in April, construction could begin as early as May.

TSMC’s expansion is supported by a sharp rise in capital spending. In January, the company projected its 2026 capex at between $52-56 billion, representing an increase of around 30% year on year. The investment surge highlights the scale of its commitments not only in Taiwan but also in overseas projects in the United States and Japan.

The combined activity across multiple science parks indicates that TSMC’s domestic build-out is accelerating rapidly, with advanced process nodes and high-end packaging at the centre of its long-term manufacturing strategy.

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