The Taiwan Semiconductor Manufacturing Company (TSMC) and the Taichung municipal government are still talking about building a 2-nanometer (nm) semiconductor fabrication facility for the former. Last week, TSMC CEO C.C. Wei paid a surprise visit to the Taichung city administration, where he led a delegation of company executives in a meeting with city mayor Show-Yen Lu.

The discussion came after city officials were cited in the Taiwanese press last month as saying that TSMC and Taichung are still negotiating for a third chip facility in the area's research and technology park. After TSMC executives minimized the discussion to the press, Taichung's mayor provided further specifics about a proposed facility.

As it prepares to push fabrication to the frontiers of physics and materials science, the Taiwanese fab wants to expand its chip production technology portfolio by introducing new processes one after the other. Simultaneously, demand for silicone products has continued to rise, having peaked in the aftermath of the continuing pandemic's peak. As a result, TSMC must not only increase manufacturing facilities to meet the growing demand for older goods but also keep up with competitors in the cutting-edge process technology industry.

On the second front, TSMC, Samsung, and Intel intend to begin mass production of 2nm chips in a few years, with the Asian firms optimistic about starting early mass production of the latest 3nm technology next year. This is the most recent chip fabrication process available on the market for companies eager to be the first to put cutting-edge technology into the hands of consumers.

TSMC's 2nm production will be based in Hsinchu, Taiwan, and reports in the Taiwan press have previously claimed that if the business needs to expand production, it may go to Taichung, where it already has facilities in the scientific and industrial park.

According to the United Daily News (UDN), city officials are concerned about the high environmental impact of new chip plants. These worries appeared to be unresolved during a recent discussion between TSMC CEO Dr. C.C. Wei and Taichung mayor Show-Yen Lu on Friday.

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Ms. Lu took press questions for the meeting while in Taiwan earlier today for an inauguration ceremony. She stated during the ceremony that if the facility is developed in the city, thousands of jobs will be created. The mayor did, however, emphasize that TSMC should investigate renewable energy to cover the facility's electricity needs.

The 2nm production unit will be built on a golf course owned by a business consortium. The course is located near Taichung's Zhonke Park. If the building does begin, the city's mayor also stated that the total project will cost around a trillion Taiwanese dollars.

According to a statement made to Channel News Asia (CNA) and published by Focus Taiwan, TSMC minimized Dr. Wei's Taichung visit. According to the CNA report, the fab's spokespersons stated that the recent event was merely a "courtesy," meaning that no arrangements have been made yet.

Its primary 2nm facility for Hsinchu is expected to use over 100,000 cubic meters of water per day, with little over three-quarters of that coming from the city's water supplies. For the Taichung facility, similar projections have been made. Hsinchu officials have requested that TSMC detail its plans for switching the 2nm plant's entire water input to recycled water as part of the approval process.

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