Taiwan Semiconductor Manufacturing Company (TSMC) has broken ground on Phase 1 facility of Fab 18 at the Southern Taiwan Science Park.

Fab 18 will be the company’s fourth 12-inch GigaFab in Taiwan and is scheduled for production of the advanced 5 nanometer process.

The lot size of Fab 18 is 42 hectares and has a total floor area of 950,000m2. Furthermore, its total clean-room area is more than 160,000 m2.

TSMC plans to complete construction of Phase 1 and begin equipment move-in in the first quarter of 2019 and commence volume production in early 2020.

Construction of Phase 2 will begin in the third quarter of 2018 and enter volume production in 2020. Third phase construction is set to commence in the third quarter of 2019 and begin operations in 2021.

All three phases are expected to increase the facility’s estimated annual capacity to more than one million 12-inch wafers and provide 4,000 skilled jobs.

Currently, more than 10,000 people are employed in the Southern Taiwan Science Park, and once the three phases begin production, more than 14,000 employees are expected to live and work in the Tainan area.

TSMC will apply green fab design to Fab 18, and include comprehensive measures for energy saving, water conservation, pollution prevention and waste reduction.

The design includes an ecological green space, which is aimed at preserving habitats of native species and providing a pleasant environment.

The construction of Fab 18 is part of TSMC’s commitment to expanding investment in Taiwan.

The company also plans to build its 3-nanometer production facilities at the Southern Taiwan Science Park.

TSMC chairman Morris Chang said: “TSMC’s Fab 18 represents three important commitments from our company: our commitment to future growth, our commitment to continue moving technology forward, and our commitment to Taiwan.

“Our estimated investment in 5-nanometer technology is approximately NT$700bn ($24.01bn), and total investment in Fab 18 will exceed NT$500bn ($17.15bn).”