Core Viewpoint - TSMC is advancing its 1.4nm process technology at the Central Taiwan Science Park, with construction starting on November 5, 2023, due to urgent demand from the U.S. for 2nm technology and delays in the development of the Nanke Shalu Eco-Science Park [1][2] Group 1 - TSMC has officially applied for construction of the new 1.4nm facility, which is expected to begin mass production in the second half of 2028, having shifted from the originally planned 2nm process [1] - The new plant is projected to generate over NT$500 billion in revenue, with the first trial production expected to be completed by the end of 2027 [1] - The urgency for 2nm technology is driven by U.S. geopolitical considerations, which require TSMC to achieve mass production of its most advanced processes before U.S. facilities can move to the next generation [1] Group 2 - The U.S. has requested TSMC to accelerate the timeline for its 2nm and 1.6nm processes to 2027, necessitating faster construction of the Kaohsiung and Central Taiwan plants [2] - The four planned factories at the Central Taiwan site are expected to become the largest production base for AI-integrated high-performance computing (HPC) chips globally, with an initial investment estimated at $46 billion and a workforce of 8,000 to 10,000 [2] - Although Nanke is planned to provide land for a 1nm advanced process factory, it is unlikely to meet U.S. demands for 2nm and 1.6nm processes due to delays in land transfer and review processes [2]

Group 1 - TSMC has officially submitted the application for the construction of its A14 (1.4nm) advanced process plant in the Central Taiwan Science Park, with an estimated initial investment of up to $49 billion, creating 8,000 to 10,000 job opportunities [1] - The new plant is expected to begin mass production in the second half of 2028, with the first risk trial production planned to be completed by the end of 2027 [1] - TSMC's new facility will be the largest production base for AI/HPC chips globally, with projected revenues exceeding $50 billion once operational [1] Group 2 - Tainan City has successfully secured approval for the "Nanke Shalun Ecological Science Park," which is expected to be used for future 1nm semiconductor processes [2] - Recent investments from SoftBank and NVIDIA into Intel, along with Samsung's push for 1.4nm process mass production, have prompted TSMC to accelerate its 1.4nm process layout to maintain market exclusivity [2]

Core Insights - TSMC is considering a price increase of 5% to 10% for all high-end process technologies in 2026 to offset U.S. tariffs, currency fluctuations, and supply chain cost pressures [1] - The higher pricing has been communicated to TSMC's foundry partners, affecting major customers like Nvidia and Apple who will face increased chip costs [1] - TSMC is also advancing its technology by planning to build a new 1.4nm advanced process plant, with an expected investment of 1.2 to 1.5 trillion New Taiwan Dollars (approximately 279.64 to 349.55 billion RMB) [3] Pricing Strategy - TSMC's potential price hike is a strategic response to external economic pressures, indicating a proactive approach to maintaining profitability [1] - The company has already informed its partners about the upcoming price adjustments, which will impact key clients in the semiconductor industry [1] Technological Advancements - TSMC is committed to advancing its manufacturing capabilities, with plans to start construction on a 1.4nm process plant in October 2023 [3] - The first two factories are expected to begin mass production by 2028, with future plans to progress to 1nm technology [3]