Dynamic random access memory (DRAM) chip maker Nanya Technology will construct a new 12 in semiconductor fab in Taishan Nanlin Technology Park in New Taipei City, Taiwan.
The Taiwanese fab will produce DRAM chips developed on Nanya’s 10 nm process technologies and will deploy extreme ultraviolet (EUV) lithography capable of producing about 45,000 wafers per month. Nanya said the fab will provide 2,000 high-tech jobs and thousands of indirect job opportunities in the region. The fab will break ground later this year with a targeted completion date of 2023 with volume production following in 2024.
"DRAM has become a critical component for the smart world,” said Chia-Chau Wu, chairman of Nanya. “In response to the memory chip market growth, Nanya Technology’s investment in advanced semiconductor plant will enhance Nanya’s international competitiveness as Taiwan’s DRAM leader and push Nanya to the next level as a key memory provider for the globe.”
Last year, Nanya developed 10 nm class technology and products using artificial intelligence and developed core cell technology for the DRAM process that allows for the capability to offer DDR5, LPDDR5 and high capacity 16 Gb DRAM products in line with future 5G and smart generation development. Mass production of these technologies is expected later this year in other Nanya factories.
The $10 billion Nanya investment in a new fab is part of the forecasted boom in manufacturing facilities coming in the next decade as the market for semiconductors is set to experience a growth boom of 5% for the 10-year period. As a result, a fab boom is expected globally to meet new demand. In the U.S. market, semiconductor manufacturers, trade organizations and the government are lobbying for an increase in domestic semiconductor manufacturing leading to the Biden Administration to call for a $50 billion investment in the technology in coming years. Intel is also building two new chip fabs in Arizona as well as starting a foundry business to meet demand.
Because the U.S. plans to increase chip manufacturing, Taiwan and Korea are upping their investments in future manufacturing to meet demand and compete with emerging capacity in the U.S. Already, Taiwan Semiconductor Manufacturing Corp. (TSMC) said it will spend $100 billion in the next three years to boost chip capacity including building a gigafab in Arizona.