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Taiwan Semiconductor Kicks Off Construction For Next-Gen 1.4nm Chips Powering Future AI Devices

Author: Anusuya Lahiri | November 03, 2025 04:59am

Taiwan Semiconductor Manufacturing Company Ltd (NYSE:TSM) will begin early construction on its advanced 1.4-nanometer chip production line next week.

The contract chipmaker plans to build four new fabrication plants, with the first expected to start commercializing the advanced technology in the second half of 2028.

Backed by an initial $49 billion investment, the project has the potential to create 8,000 to 10,000 jobs and significantly boost Taiwan’s role in the global chip supply chain, TechNode reported on Monday.

Also Read: Taiwan Semiconductor Expands In Japan With New $14 Billion Chip Factory

Construction Timeline and Site Details

Taiwan Semiconductor has already completed bidding for foundation work, and construction will officially begin on November 5 at Taiwan’s Central Science Park.

Once finished, the massive complex is expected to become the world’s largest production hub for artificial intelligence (AI) and high-performance computing (HPC) chips.

Stock Performance and Market Momentum

Taiwan Semiconductor stock gained over 52% year-to-date, topping the NYSE Composite’s (which includes Taiwan Semiconductor) over 12% returns due to demand for advanced chips used in AI, 5G, and smartphones.

The company’s A14 process technology (1.4 nanometers) could deliver chips that are 15% faster or consume 30% less power than its upcoming 2nm chips, which begin mass production later this year.

Strengthening Partnership with Nvidia

Reports indicated last week that Taiwan Semiconductor deepened its partnership with Nvidia Corp (NASDAQ:NVDA) as the exclusive customer for its upcoming A16 process node, designed for next-generation AI and high-performance computing chips.

The two companies are jointly testing the A16 technology, which integrates nanosheet transistors and Super Power Rail (SPR) systems to boost speed and energy efficiency. Nvidia plans to use the A16 process for its Feynman GPU architecture, which will be released in 2028.

Taiwan Semiconductor expects AI chipmakers to be early adopters of the A16 node when production begins in the second half of 2026.

Price Action: TSM stock was trading higher by 0.21% to $301.05 premarket at last check Monday.

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Photo by Jack Hong via Shutterstock

Posted In: NVDA TSM

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