Taiwan Semiconductor Manufacturing Co Ltd (TSMC) has decided not to construct an advanced chip factory in a rural area of northern Taiwan due to local residents’ protests against relocating for an industrial park expansion.

TSMC abandons plans for an advanced chip factory in northern Taiwan following protests

In this illustration taken on March 6, 2023, a smartphone displaying the TSMC (Taiwan Semiconductor Manufacturing Company) logo is positioned on top of a computer motherboard

TSMC has stated that it will collaborate with the government-run Science Park Administration to assess suitable land locations in Taiwan for constructing semiconductor fabs, without specifying any potential alternative sites.

TSMC, the largest contract chip manufacturer globally, had plans to establish a 1-nanometer chip factory in Longtan, as reported by the Central News Agency in December, citing a statement from a Science Park Administration official. TSMC’s most advanced technology currently in mass production is the 3-nanometer technology.

Taiwan’s Minister of Economy, Wang Mei-hua, has affirmed that the government would provide assistance to TSMC in terms of land, water, and power requirements, recognizing the semiconductor industry’s significant importance to the island.

TSMC abandons plans for an advanced chip factory in northern Taiwan following protests

In this illustration taken on March 6, 2023, a smartphone displaying the TSMC (Taiwan Semiconductor Manufacturing Company) logo is positioned on top of a computer motherboard

Chen Chi-mai, the mayor of Kaohsiung in the southern region where TSMC is presently constructing a 2-nanometer chip factory, expressed that his city possesses ample water, power, and land resources to accommodate additional semiconductor factories. He stated to reporters that “Opportunities are reserved for those who are prepared.”

Reporting by Sarah Wu; Additional reporting by Ben Blanchard and Yimou Lee; Editing by Edwina Gibbs

Our Standards: The Thomson Reuters Trust Principles.

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