TSMC plans to build an additional 3-nanometer chip fabrication plant in Tainan, Taiwan. Mass production is slated to begin in the first half of 2028. The company expects strong demand for its 3nm process, which serves AI, high-performance computing and next-generation consumer electronics.
The expansion is part of TSMC’s broader growth in global manufacturing. The company is also building facilities in Arizona and has newly approved a plan to produce 3nm chips at its second plant in Kumamoto, Japan, by 2028.
The announcement follows TSMC’s report of a 69% rise in third-quarter profits, driven by its most advanced process nodes.
Despite the announcements and strong earnings, TSMC shares came under pressure on October 19. Analysts pointed to wider market concerns about the financial stability of U.S. AI infrastructure companies and the possibility that more efficient AI models could reduce hardware demand.