Amidst the escalating changes in the global semiconductor industry landscape, TSMC's Nanjing wafer fab recently stated that its operations are not at risk of disruption and emphasized that it will continue to provide globally leading process technology support to customers in mainland China. This statement injects a strong boost into the domestic chip industry chain and reflects TSMC's resilience in maintaining technological collaboration in a complex international environment.
Nanjing fab expansion progresses steadily, mature process technology layout deepened.
Since announcing the expansion of its 28nm production line in 2021, TSMC's Nanjing fab has become an important mature process technology manufacturing base in mainland China. Although the US Chip Act sets a 10% capacity growth cap for subsidized companies in mainland China, TSMC continues to improve operational efficiency through optimization and upgrades of existing production lines. As a crucial node in TSMC's global strategy, the Nanjing fab not only serves the needs of the domestic market but also drives the development of surrounding supporting industry chains through its technology spillover effect.
Exemption Policies Guarantee Equipment Supply; Mainland Customers Enjoy Globalized Technological Dividends
Despite the continued tightening of US export controls on semiconductor equipment to China, TSMC's Nanjing plant has obtained an "indefinite exemption" for key equipment, ensuring the stable operation of its existing production lines. Notably, TSMC's global capacity allocation allows mainland customers to indirectly access support for advanced processes such as 7nm/5nm—chip orders from mainland Chinese design companies can be fabricated at TSMC's overseas plants in the US and Japan, and then imported for packaging and testing in China, forming a closed-loop supply chain through cross-border collaboration.
The Art of Balancing the Industry Amidst Multiple Challenges
Faced with geopolitical pressures, TSMC is demonstrating exceptional balancing capabilities: on the one hand, strictly adhering to the regulations of various countries, such as limiting the expansion of advanced processes at the Nanjing plant; on the other hand, deepening its ties with mainland partners through technology licensing and talent development. It is pointed out that the mainland Chinese chip industry needs to seize this window of opportunity, strengthen its independent innovation capabilities in mature process areas, and simultaneously compensate for its shortcomings in advanced processes through overseas cooperation, building a more resilient semiconductor ecosystem.
In the current wave of global chip industry restructuring, the stable operation of TSMC's Nanjing plant will become a key link connecting mainland China with the global technology chain, and its future development is worth continued attention.