TAIPEI, May 4, 2026, 02:03 (Taiwan Standard Time)
- TSMC may get the space it needs for future chip fabs if the Longtan Science Park expansion moves ahead.
- Timing is key here—AI demand’s been squeezing advanced-node capacity.
- Land issues, outstanding approvals, and environmental challenges remain obstacles for the plan.
Taiwan Semiconductor Manufacturing Co. could be back in the running for advanced chip plants at Longtan. UDN’s Economic Daily News, citing industry sources late Sunday, said a previously halted science park expansion is back on, with potential investment pegged between NT$500 billion and NT$600 billion. According to the report, the site might house so-called “angstrom-level” wafer fabs—referring to chip processes beyond the current nanometre technology. UDN
The report comes at a time when TSMC—the world’s top contract chipmaker—is pushing to ramp up AI chip capacity while holding onto its edge in cutting-edge manufacturing. Last month, TSMC reported first-quarter revenue up 35.1% from a year ago to NT$1.13 trillion, with net income jumping 58.3% to NT$572.48 billion.
What started as a company trend has turned into a national story. Taiwan’s statistics bureau reported a preliminary 13.69% year-on-year jump in first-quarter real GDP, fueled in large part by exports of AI hardware and other tech products.
Hsinchu Science Park Bureau chief Hu Shih-min told Economic Daily News that officials have already held a public hearing on the third-phase expansion at Longtan Science Park. The plan calls for roughly 104 hectares, according to the report. A feasibility study cleared the National Science and Technology Council in mid-March, with a more detailed submission targeted for May.
Longtan’s history here is anything but new. Economic Daily News reported that this spot was previously connected to TSMC’s proposed 1.4-nanometre fab, which the chipmaker scrapped in 2023 after pushback from locals. Back then, the Hsinchu Science Park Bureau said it would review the expansion plans, aiming to strike a balance between industry growth and community concerns.
In the chip industry, terms like “nanometre” and “angstrom” are shorthand for different technology generations rather than precise descriptions of each transistor’s dimensions. Smaller process nodes tend to mean lower power consumption and higher data throughput—key factors for AI workloads demanding immense compute. Last month, TSMC introduced its A13 technology, which Reuters says is set for production in 2029 and will likely target AI chips. Reuters
TSMC says demand is still robust. “Our business in the first quarter was supported by strong demand for our leading-edge process technologies,” Chief Financial Officer Wendell Huang said in the company’s April earnings release. The chipmaker is projecting second-quarter revenue somewhere between $39.0 billion and $40.2 billion. TSMC
Back in April, Chief Executive C.C. Wei flagged “extremely robust” AI-driven demand to analysts—even as he kept an eye on broader macro uncertainty. “TSMC’s fabs are running hot,” Quilter Cheviot’s tech research head Ben Barringer told Reuters, underscoring just how elevated utilization still is. Reuters
Competitive heat remains high. Samsung Electronics, up against TSMC and Intel in the contract chip space, told investors on April 30 it’s eyeing more advanced 2-nanometre contracts and is weighing a second fab in Taylor, Texas, after discussions with clients.
The Taipei market wasn’t open for trading at the time of publication—TWSE keeps its session from 09:00 to 13:30. TSMC’s ADR in New York finished Friday at $397.67. The chipmaker will report April sales on May 8.
The Longtan project remains up in the air. TSMC’s involvement, according to the report, is based on what industry sources are saying. Before any expansion can go forward, there’s still a lot to clear: a full set-up plan, scrutiny from the Executive Yuan, and a round of environmental assessment. And it’s worth noting, locals have already pushed back on this site once.
The next hurdle isn’t so much about chips as it is about real estate. Should Longtan get the green light, TSMC could secure a bigger share of its most advanced manufacturing at home in Taiwan, despite ramping up operations in the U.S. and Japan. But if Longtan falters, the company’s long-running squeeze on capacity stays exactly where it’s always been: right up against demand.
