Asianometry

The Economics of TSMC’s Giga-Fabs


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In 2018, TSMC broke ground on Fab 18 near Tainan City in the south of Taiwan. Fab 18 is a monster. It sits on 103 acres and has a total floor space of 950,000 square meters (10.2 million square feet). That is about 3 times the size of AT&T Stadium in Dallas, Texas - home of the Dallas Cowboys. 

In total, across all of its phases, Fab 18 will cost TSMC nearly $20 billion to build and operate. More than the cost of the USS Gerald R. Ford, the US Navy's most advanced aircraft carrier. 

In this video, we are going to look at why TSMC's fabs are getting bigger and more expensive than ever before. And why that makes a lot of economic sense for the Taiwanese chip maker. 

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AsianometryBy Jon Y

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