Taiwan: TSMC Abandons Plans For Most Advanced 1.4-nm Semiconductor Chip Fab After Protests By Locals Over Land Acquisition And Environmental Concerns

Taiwan Semiconductor Manufacturing Co (TSMC) announced on Tuesday (Oct 17) that it was scrapping a plan to build a new fab to produce next-generation chips in the Longtan section of Hsinchu Science Park over protests by locals over the government acquiring privately owned land for industrial use.

TSMC had planned to build a factory in Longtan to produce 1.4-nanometer chips, which would be its most advanced chips. 

The world's largest contract chipmaker's 2-nanometer chips are set to be available in 2025, and its 3-nanometer chips are already being used in Apple Inc's latest iPhone 15 series.

In an official statement, the company said it is dropping its new fab construction plan in Longtan after negotiations with local residents broke down on Friday.

"After evaluation, TSMC is no longer considering establishing a site at phase 3 of the Longtan section under present conditions," the chipmaker said.

The project has faced stiff resistance from Longtan residents on environmental grounds. Several protests were staged, demanding that TSMC withdraw its plan.

The proposed fab needed 158.59 hectares of land to be acquired, about 90 per cent of which is privately owned.

TSMC is likely to scout for an alternative location for the fab factory. The Taiwanese chipmaker continues to maintain the bulk of its capacity in Taiwan and has committed to building the most advanced chips in fab facilities located locally.

The Taiwanese government has also promised to assist TSMC in finding a suitable site for an advanced wafer fab. Taichung or Kaohsiung have emerged as potential locations for the most advanced fab.