The fact that they are converting a research fab to a 'production' fab suggests to me that TSMC purchased additional equipment to handle Intel's contract/demand. The Intel demand was added to the production schedule too late to build a 'production fab' specifically for Intel but the demand could be handled in a converted R&D fab. My own speculation is that this is populated in part with the two EUV machines that Intel sold back to ASML in early 2021.
Peter Wennink
"Due to the delay in one of our customer's roadmaps, we jointly decided to buy back two of their new systems and ship these to another customer this year."
Call Start: 09:00 Call End: 10:02 ASML Holding N.V. (NASDAQ:NASDAQ:ASML) Q1 2021 Earnings Conference Call April 21, 2021 09:00 AM ET Company Participants Skip Miller - Vice President,...
seekingalpha.com
A detail that many, myself included, seem to miss is the very long lead times in both production of EUV machines and then the installation and alignment of EUV equipment.
Peter Wennink
"you need to realize that the integral lead time between the installation of EUV tool and the start of a module production is 20 months."
ASML Holding N.V. (NASDAQ:NASDAQ:ASML) Q4 2020 Earnings Conference Call January 20, 2021 9:00 A.M.
seekingalpha.com
In mid 2020 both TSMC and Intel discussed delaying delivery of EUV machines due to the loss of Huawei as a customer, the delayed transition to Intel 7nm and the pandemic. TSMC changed their minds by the fourth quarter of 2020 but the delay of component delivery for EUV equipment assembly had already started. Intel did not reverse their decision and apparently sold back at least two of their machines in early 2021. TSMC has been buying every EUV machine available for conversion of N7 to N6, expansion of N5 and start up of N3 production. TSMC has at least two of Intel's contracted machines if not more.