Biology of Business

Tainan City

City in Taiwan

By Alex Denne

Taiwan's oldest city became its most advanced manufacturing location—Tainan hosts TSMC's 3nm mass production (Fab 18, world's most sophisticated chip plant) while preserving 400+ years of temples and heritage architecture. The Southern Taiwan Science Park transformed what was agricultural hinterland into a $60.98B production complex.

Fab 18's GIGAFAB facility exceeds 1 million 12-inch wafers annually, manufacturing chips for iPhone, Nvidia AI accelerators, and AMD processors. The 3nm process represents the current technological frontier; 2nm development proceeds here as well. Tainan anchors the southern manufacturing expansion that complements Hsinchu's concentration.

The juxtaposition defines contemporary Taiwan: ancient capital status attracts tourism and cultural investment while semiconductor production generates export revenue. Tainan demonstrates that heritage preservation and high-tech manufacturing can coexist—different land uses, different workforces, both contributing to urban vitality.

2026 trajectory: 2nm mass production begins at Tainan facilities alongside Hsinchu. The Taiwan Tech Arena (TTA-South) incubates startups in the semiconductor ecosystem. Agricultural land conversion accelerates for fab expansion while historic districts receive protection investment. The city balances dual identities—ancient and cutting-edge.

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