Building five fabs could cost TSMC as much as $15 billion, according to the report. On the plants' completion, TSMC will have a total of seven 12-inch factories in Taiwan.

The company's decision to continue development in its home country seems a strong statement of its loyalties there, as the company now has more flexibility than ever to expand in neighboring China. Despite lingering political tension between the two countries, Taiwan's government officially gave permission to three Taiwan-based companies to invest a combined $825 million in China. And just last week, Taiwan's government green-lighted a plan to allow Taiwanese chipmakers to use the more advanced 0.18-micron technology in their China factories. Currently, TSMC has one wafer plant in Shanghai.