Taiwan Semiconductor Manufacturing Co. TSM stock trended on Wednesday following reports that the contract chipmaker plans to break ground on a new 1.4-nanometer fabrication plant in Taichung next quarter.
The facility is expected to reach an annual production value of up to 500 billion New Taiwanese dollars ($16.49 billion), the Taipei Times reported on Wednesday citing the Central Taiwan Science Park Bureau.
Hsu Maw-shin, director-general of the bureau, dismissed speculation of delays, stating that Taiwan Semiconductor is proceeding “at full speed.”
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The key Nvidia NVDA supplier plans to start construction in the fourth quarter.
The facility, dubbed Fab 25, will deploy 1.4nm technology more advanced than the 2nm process originally planned, boosting its projected production value beyond earlier estimates of 485.7 billion New Taiwanese dollars.
The new fab has the potential to create about 4,500 jobs and begin producing chips in 2028.
The chipmaker is simultaneously preparing to commercialize 2nm chips next quarter in Hsinchu and Kaohsiung, with 1.6nm production scheduled in Kaohsiung during the second half of 2026.
Beyond Taichung, Taiwan Semiconductor also plans to build an advanced technology facility in Tainan’s Shalun District, while expanding advanced packaging capacity in Chiayi County’s Taibao City. Officials emphasized construction remains ahead of schedule.
Taiwan Semiconductor stock has surged 41% year-to-date, outperforming the PHLX Semiconductor Index’s 26% gain. The company’s role as a key supplier to Nvidia and Apple AAPL has reinforced its global footprint, spanning the U.S., Germany, and Japan.
Price Action: TSM stock was trading lower by 1.22% to $279.26 at last check Wednesday.
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