TSMC is planning to build a third 2nm fab in Kaohsiung, Taiwan.

According to a report from United Daily News (UDN), the Kaohsiung city government this week approved a land rezoning proposal to allow the third fab to be built at an industrial park in the Nanzih District of the city.

The new fab will sit on a parcel of land measuring 17.22 hectares and situated to the east of TSMC’s first plant at the 238-hectare Nanzih Technology Industrial Park.

Earlier this week it was reported that demand for Nvidia’s upcoming Blackwell-series AI chips had already started to outpace supply, causing the GPU giant to increase production volume with its manufacturer TSMC, a move which has likely fueled the company’s decision to further expand its Kaohsiung manufacturing site.

The company broke ground on the first fab at the industrial park in August 2022, with mass production at the facility expected from next year.

Construction for the second fab is also underway however, the land it sits on previously housed a state-owned oil refiner, meaning the company has had to undertake a large soil reclamation and cleanup operation before work could begin.

In order to build this third fab, more polluted land will now need to be cleared.

Earlier this month, TSMC was forced to halt construction work at its CoWoS (Chip-on-Wafer-on-Substrate) advanced semiconductor packaging plant in Chiayi Science Park, also in Taiwan, after suspected archaeological ruins were discovered at the site.

In order to move ahead with that development, the company put forward a proposal to move the location of the plant and begin construction of its second CoWoS facility at the park while the issues at the first site get resolved.