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The Taiwan Semiconductor Manufacturing Company (TSMC)'s 2-nanometer chip manufacturing plant slated to start construction in Taiwan's Taichung City will not be able to start construction by the end of this year, according to the director of the agency responsible for managing science and technology infrastructure in the island. TSMC planned to build two 2-nanometer sites in Taiwan, with the first in Hsinchu City. However, the firm confirmed earlier this year that it would also manufacture the next-generation chips in the island's Kaohsiung City as well, and it appears that this decision has been motivated by delays in the approval for the Taichung site.
The main hurdles surrounding the 2-nanometer site in Taichung revolve around the plant's water and electricity needs. Chip fabrication is a resource intense process that requires high levels of purity which needs large amounts of pure water to ensure that the purity requirements of the products are met. These have often created hurdles for TSMC, with a drought in Taiwan in 2021 forcing the fab to meet its water requirements by ordering water tankers.
According to Taiwanese sources, if the city government approves the Taichung 2-nanometer fab's plans, then they will be forwarded to the interior ministry. The review at this stage will allow for land allocations and related operations, but the sources believe that even if the ministry approves the project as soon as it can, the subsequent formalities will most likely mean that TSMC cannot start construction by the end of this year.
TSMC plans to mass produce 2-nanometer products in 2025,
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