Tuesday, August 22, 2023

TSMC's 2nm Chip Plant Faces Delays in Taichung, Water and Electricity Hurdles Cited

Taiwan Semiconductor Manufacturing Company (TSMC) is experiencing setbacks in the construction of its highly anticipated 2-nanometer chip manufacturing plant in Taichung City, Taiwan. Delays have been attributed to challenges related to water and electricity supply, crucial for the resource-intensive chip fabrication process. This development comes as TSMC seeks to expand its manufacturing capabilities amid a rapidly evolving semiconductor landscape.

aiwan Semiconductor Manufacturing Company (TSMC), a global leader in semiconductor manufacturing, is facing delays in the construction of its planned 2-nanometer chip manufacturing plant in Taichung City, Taiwan. The director of the agency responsible for managing science and technology infrastructure on the island has indicated that the construction will not commence by the end of this year.

TSMC initially intended to establish two 2-nanometer manufacturing sites in Taiwan, with the first site in Hsinchu City. However, due to delays in the approval process for the Taichung site, the company confirmed its decision to also manufacture next-generation chips in Kaohsiung City.

The primary challenges affecting the Taichung site relate to the plant's water and electricity requirements. Chip fabrication demands high-purity conditions, necessitating large volumes of pure water to meet product purity standards. TSMC has encountered obstacles in securing an adequate water supply, particularly during a 2021 drought that led the company to employ water tankers to fulfill its water needs.

These developments underscore the intricate logistical challenges inherent in semiconductor manufacturing, where resource-intensive processes require precise environmental conditions. While TSMC continues to innovate and expand its global operations, addressing these challenges becomes paramount to maintaining its position at the forefront of the semiconductor industry.

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