Taiwan is accelerating the development of the Shalun Science Park in Tainan, which is widely believed to be the designated site for TSMC's cutting-edge 1.2-nanometer (nm) process technology.
This rapid push stems directly from the explosive growth in the AI industry. TSMC, the world's leading chipmaker, has projected a nearly 30% revenue increase for 2026 and plans a massive capital expenditure of $52-56 billion. With its 2nm chips already in production and a clear roadmap for even more advanced A16 (1.6nm) and A14 (1.4nm) nodes, the company is under immense pressure to secure land for future factories. The decision to fast-track the Shalun park reflects the urgency to meet this surging demand.
However, the project faces a significant hurdle: Taiwan's rigorous Phase 2 Environmental Impact Assessment (EIA). This process is particularly challenging because the proposed site is a critical habitat for the endangered Oriental grass owl. Past conservation efforts at other science parks have been criticized as insufficient, placing the Shalun project under intense scrutiny. Success depends on proving that economic expansion and ecological preservation can coexist.
This situation didn't develop overnight. The critical trigger was the Southern Taiwan Science Park Bureau's announcement in March 2026 to submit the environmental report in April, officially starting the clock on the review process. This move was underpinned by TSMC's strong financial guidance in January 2026, which highlighted the need for expansion, and the government's approval of the park plan in September 2025, which laid the political groundwork.
By moving the environmental review forward, authorities are attempting to proactively manage the conflict between development and conservation. They have proposed measures like creating ecological corridors and protected zones to address the concerns of environmental groups from the outset. This strategy aims to reduce uncertainty and clear the path for a project critical to both TSMC's future and Taiwan's central role in the global tech supply chain.
- Phase 2 Environmental Impact Assessment (EIA): A stricter, more comprehensive environmental review in Taiwan required for large-scale development projects with potentially significant environmental impacts.
- Oriental grass owl (Tyto longimembris): An endangered species of owl whose habitat is a central point of contention in the Shalun Science Park development.
- A16 / A14: Codename for TSMC's future process nodes, referring to 1.6-nanometer and 1.4-nanometer technologies, respectively. These represent the next frontier in semiconductor manufacturing.