TSMC's halted plant project resumes after three years, igniting the AI chip race

\r\n[The Financial News] Taiwan Semiconductor Manufacturing Company Limited (TSMC) has resumed a land development project for next-generation semiconductor production after about three years.
On the 4th, Taiwanese media including United Daily News reported that "TSMC is pushing ahead again with its construction plans as the shortage of chips related to artificial intelligence (AI) and high-performance computing (HPC) has become more severe."
According to sources, TSMC is once again moving forward with the Longtan Science Park Phase 3 Expansion and Construction Project, which had effectively been suspended in 2023 due to opposition from local residents' groups. The company plans to invest between NT$500 billion and NT$600 billion, or about 23.2 trillion won to 27.9 trillion won, in the site to produce next-generation angstrom-class semiconductor chips. The land area will also expand from the original 88 hectares to 104 hectares.
Another source said this is related to the Taiwan government's plan to invest NT$100 billion, or about 4.6 trillion won, by 2027 in the island's version of Silicon Valley under the Greater Silicon Valley Plan, a campaign pledge made by President Lai Ching-te. Lai had previously said he would push ahead with Taiwan's New Ten Major AI Infrastructure Projects to generate up to NT$15 trillion, or about 699.7 trillion won, in production by 2040 and create 500,000 AI jobs. At the time, he stressed that he would make Taiwan one of the world's top five computing powers and an "AI island" through the full development of an AI ecosystem.
Meanwhile, to carry out these measures, Hu Shih-min, head of the Hsinchu Science Park Bureau, which oversees the northern Longtan Science Park, said that the views of residents who had previously opposed the project have changed, and that a public hearing on the project was recently held. He added that detailed plans will be submitted to and reported to the National Science and Technology Council (NSTC) in May, and that if the review is approved, they will then be reported to the Executive Yuan.
whywani@fnnews.com Hong Chaewan Reporter