TSMC, the world's largest semiconductor manufacturer, is preparing to introduce its first 1.4 nm chips by 2026, according to industry insiders. This advancement would mark a significant leap in chip manufacturing, entering the sub-2 nm era, which allows for more powerful and energy-efficient processors. To support this transition, TSMC is planning to bring four new manufacturing plants online by the second quarter of 2028, all located within the Central Taiwan Science Park. These facilities will be dedicated to producing 1.4 nm chips, with pilot production of early prototypes potentially beginning as early as the third quarter of 2027. Once full production starts, the monthly output is expected to range between 120,000 and 160,000 silicon wafers.
The cost of producing a 1.4 nm chip wafer is estimated at $35,000, which is lower than earlier predictions of $45,000. In comparison, the current cost of a 2 nm wafer is $33,000, after a 10 percent increase by TSMC. Although the price difference between the two technologies is relatively small, these figures may change as the technology matures and production scales up. The relatively narrow cost gap suggests that the transition to 1.4 nm could be more economically feasible than previously expected, even before the chips reach consumers.
TSMC is already receiving a growing number of orders for its upcoming 1.4 nm technology, driven largely by demand in the artificial intelligence sector. Companies are racing to secure production slots to avoid potential shortages, as the advanced chips are critical for next-generation AI systems and other high-performance applications. Apple, for example, is reportedly planning to launch its first 1.4 nm system-on-chip (SoC) in 2028. Major tech firms like AMD, Broadcom, and NVIDIA have also begun reserving production capacity with TSMC, signaling strong industry confidence in the new technology.
Once the four 1.4 nm manufacturing plants are fully operational, they are expected to generate annual revenue between $45 and $52 billion for TSMC. This would account for more than 30 percent of the company's total revenue, highlighting the significance of the 1.4 nm technology in TSMC's business strategy. The scale of investment and the level of industry demand underscore the transformative potential of this next-generation chip manufacturing process.
TSMC Plans 1.4 nm Chip Production by 2028 Amid Growing Demand
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