TSMC is preparing a new capacity restructuring in Taiwan to meet the demand for advanced chips related to Artificial Intelligence, HPC, and high-performance devices. According to Economic Daily News, reported by TrendForce, the Taiwanese company is upgrading its Fab 15A, located in the Central Taiwan Science Park, to shift from mature 28 and 22-nanometer processes to 4 nanometers.
The move has a dual interpretation. On one hand, TSMC gains capacity in advanced nodes without solely relying on new plants. On the other hand, it frees up equipment from mature processes that could end up in the European factory in Dresden, a facility focused on automotive and industrial applications, which is expected to start production by late 2027. This operation aligns with a recurring industry trend: the demand for chips for data centers is increasingly addressed through meticulous planning of nodes, packaging, industrial placement, and equipment supply, rather than just increasing wafer throughput.
Fab 15A Upgrades to a Higher Tier
Fab 15A was previously focused on 28 and 22 nm processes, which remain fundamental for consumer electronics, automotive, connectivity, controllers, and industrial applications. Now, according to supply chain sources cited by the Taiwanese media, TSMC has initiated a major upgrade to adapt the facility to 4 nanometers.
The estimated cost of this conversion exceeds 100 billion Taiwanese dollars, or approximately $3.16 billion USD at the original exchange rate. The investment would include new cleanrooms and machinery, as well as a gradual transfer of older equipment. Fab 15B, also in the Taichung area, will reportedly remain in 7 nm production for now.
This decision makes industrial sense. 4 nm remains a highly demanded technology for high-performance chips, graphics processors, accelerators, server designs, and advanced client components requiring a balance of performance, power consumption, and process maturity. While industry focus often shifts toward 2 nm, A16, A14, or A13, mass production realities show a more staggered cycle: older nodes continue to generate volume and margins while newer ones move toward commercial maturity.
Repurposing space at Fab 15A also allows TSMC to expand advanced capacity in Taiwan without waiting for all new facilities to come online. In a market where construction timelines, permits, EUV equipment, electrical supply, and skilled talent are as critical as capital, upgrading an existing, ecosystem-integrated factory can be faster than starting from scratch.
Dresden Will Receive Legacy Mature Nodes
The displaced 28 and 22 nm equipment is not expected to become idle. Reports indicate that some of this machinery might be transferred to TSMC’s Dresden plant in Germany, where European Semiconductor Manufacturing Company (ESMC) is building a joint facility with Bosch, Infineon, and NXP.
The European site has a different focus compared to Taiwan’s cutting-edge nodes. ESMC will initially focus on 28/22 nm planar CMOS and 16/12 nm FinFET processes, targeting automotive, industrial, IoT, and telecommunications applications. When announced, TSMC mentioned the plant would have a capacity of around 40,000 300 mm wafers per month, with an investment exceeding €10 billion and approximately 2,000 high-skilled direct jobs at full capacity.
This development is significant for Europe. The EU isn’t currently seeking immediate competition with Taiwan on the most advanced AI nodes but aims to reduce vulnerabilities in critical chip sectors for automotive, manufacturing, and infrastructure systems. The chip shortage experienced during the pandemic revealed how reliance on mature processes can still disrupt entire supply chains.
Transferring equipment from Taiwan to Dresden, if confirmed, could accelerate Europe’s access to proven manufacturing technology. It also illustrates how TSMC distributes its global network—while Taiwan concentrates on pushing the most advanced nodes, the U.S., Japan, and Europe gain relevant capabilities with carefully selected technologies and target markets.
Progress on 1.4 nm in Taichung
Another piece of the story looks further ahead. The 1.4 nm project in the second phase at Central Taiwan Science Park, also in Taichung, appears to be advancing ahead of schedule. According to Economic Daily News, foundation work is nearly complete, and main construction tenders may begin soon.
If progress continues at this pace, prototype production could start as early as Q3 2027, with mass production in H2 2028. TSMC refers to its 1.4 nm technology as A14, a generation expected to compete at the high end of the market for AI, HPC, and premium device customers.
Taichung’s strategic importance extends beyond a single plant. As reported by TrendForce, once all four factories of phase 2 are operational, this complex could become the world’s largest high-performance AI and compute chip manufacturing hub. While ambitious and aligned with TSMC’s increasing dominance in advanced chip fabrication, it reflects a broader industry trend of significantly expanding high-end capacity.
There’s also a geopolitical aspect. The 1.4 nm node isn’t included in the American plans for TSMC cited in these reports. Although the company is investing heavily in Arizona and aligning with U.S. efforts to promote local manufacturing, the most advanced nodes still depend heavily on Taiwan. For hyper-scale customers and accelerator manufacturers, this confirms that the island will remain the focal point for cutting-edge production in the coming years.
Recently, TSMC announced A13, a direct evolution of A14 presented at its North America Technology Symposium in 2026. The company states that A13 reduces die area by 6%, maintains compatibility with A14’s design rules, and is scheduled for production in 2029—one year after A14. This approach indicates a strategy focused on a series of compatible nodes, easing customer migration and design adaptation.
Meanwhile, advancing logic manufacturing also requires more advanced packaging capacity. TrendForce reports moves by Siliconware Precision Industries, a subsidiary of ASE, including acquisitions and expansion plans in southern and central Taiwan. The reason is straightforward: AI chips depend not only on advanced nodes but also on integrating multiple dies, HBM memory stacks, and high-speed interconnects into increasingly complex packages.
The upgrades at Fab 15A, progress on 1.4 nm in Taichung, and expansion of advanced packaging all point in the same direction. TSMC is simultaneously tuning its mature, advanced, and future capacity. In an industry where each generation demands more capital and coordination, the ability to shift focus swiftly without losing momentum is as crucial as the technological node itself.
Frequently Asked Questions
What is TSMC changing at Fab 15A?
According to Economic Daily News and TrendForce, TSMC is upgrading Fab 15A in Central Taiwan Science Park from 28/22 nm to 4 nm.
What will happen to the old 28/22 nm equipment?
Some of those tools are expected to be transferred to TSMC’s Dresden, Germany facility, focused on mature processes for automotive, industrial, IoT, and telecom applications.
When might TSMC’s 1.4 nm production begin?
Reports suggest prototype production could start in Q3 2027 and mass production in H2 2028, if schedules proceed as planned.
What is A13 and how does it relate to A14?
A13 is a direct evolution of A14 announced by TSMC in 2026. The company claims it reduces die size by 6%, remains compatible with A14’s design rules, and is scheduled for production in 2029.
via: trendforce and money.udn