TSMC moves 1.4nm chip production a year ahead to 2027

TSMC Taiwan Semiconductor Manufacturing Company Limited ↘ 1.68% is pulling forward its most advanced chipmaking technology by roughly a year, with trial production of 1.4-nanometer semiconductors now expected to begin in April 2027 and mass production to follow in the second half of the year, according to Taiwanese government officials and local media reports published on September 10.

Fab 25 Construction Races Ahead

The Central Taiwan Science Park Administration disclosed on September 9 that construction at TSMC's Fab 25 complex in Taichung is running approximately six months ahead of the original schedule. Deputy Director-General Wang Chun-chieh said the first plant, P1, has completed its steel structure and is now undergoing floor-slab construction, with facility completion expected by April 2027. P2 is currently in foundation work and is targeted for completion by October 2027.trendforce+1

According to Taiwan's Economic Daily News, as cited by TrendForce, P1 could begin mass production as early as the second half of 2027 — well ahead of the original 2028 timeline. The two fabs together are expected to reach mass production by late 2027. As recently as July, supply chain sources had indicated pilot production would not begin until the third quarter of 2027, with mass production still planned for 2028.vgtimes+2

TSMC is investing roughly $49 billion in the four-plant complex. Two additional fabs, P3 and P4, are in earlier stages — P3 has secured a construction permit, while P4's application is pending. All four are expected to be completed by 2028. Once fully operational, the Central Taiwan Science Park Administration has estimated the fabs could generate annual revenue exceeding NT$500 billion, a figure it now says "may be an underestimate".asiae+2

Widening the Gap With Rivals

The acceleration extends TSMC's lead over its closest competitors in advanced manufacturing. Samsung has pushed its own 1.4-nanometer mass production target from 2027 to 2029, citing a need to prioritize its 2-nanometer ramp. Intel ↘ 5.57% has targeted 2028 for its comparable 14A node.techpowerup+2

The move comes as surging demand for AI semiconductors has pushed TSMC's 5-nanometer, 4-nanometer, and 3-nanometer capacity to near-full utilization. Major equipment suppliers including ASML ↘ 2.43%, Tokyo Electron, and KLA ↘ 3.13% have expanded operations in Taichung to support the ramp. TSMC held a 72.5% share of the global foundry market in the second quarter of 2026, with revenue of $40.2 billion, according to TrendForce.trendforce+1