Contract chipmaker Taiwan Semiconductor Manufacturing Co (NYSE:TSM) is rumored to be building a massive 1nm fabrication facility in southern Taiwan, dubbed “Fab 25,” in Shalun, Tainan.

The facility could accommodate six 12-inch plants, expanding its existing advanced process in Nanke, UDN reports.

The production cluster synergy connects to Chiayi in the north and Kaohsiung and Pingtung in the south.

Also Read: Taiwan Bans DeepSeek AI Over Security Concerns, Joins Global Scrutiny of Chinese Tech

Taiwan Semiconductor has built new factories in Baoshan, Hsinchu, Nanzi, and Kaohsiung as 2nm production bases.

Taiwan Semiconductor’s focus on building new factories in the future will shift towards Taiwan’s southward, Chairman Wei Zhejia told UDN. Also, the company’s board will “travel” to Arizona, USA, in the middle of February, where its total investment stands at $65 billion.

Reportedly, Taiwan Semiconductor has proposed establishing a 1.4nm and 1nm site in Shalun, Tainan, to the Southern Taiwan Science Park Administration.

This implies that the first three plants, P1 to P3, will produce 1.4nm technology, and the last three will produce 1nm.

Meanwhile, macroeconomist Henry Wu told the Taipei Times that Donald Trump’s threats of slapping tariffs on Taiwan would backfire, citing Taiwan Semiconductor’s technological moat and pricing power.

Lien Hsien-ming of Chung-Hua Institution for Economic Research told the Taipei Times that potential tariffs on Taiwan’s semiconductor industry would significantly impact mature chip producers more than advanced ones, as the former face more competition and less pricing power. Therefore, he urged Taiwan to allow its domestic currency to appreciate and reduce the trade deficit with the U.S..

Price Action: TSM stock traded lower by 3.45% to $202.10 premarket at the last check Monday.

Also Read:

• Taiwan Semiconductor Gains Government Support, Faces Trump’s Tariff Threats, Cheaper Chinese Rivals

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