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TSMC to Build Two More Advanced Packaging Plants in Taiwan Amid AI Boom
Taiwan Semiconductor Manufacturing Co. (TSMC) will construct two additional advanced chip packaging plants in southern Taiwan, a strategic expansion designed to meet overwhelming demand driven by the artificial intelligence sector. The plan was announced by Taiwan’s National Science and Technology Council Minister Wu Cheng-wen at a groundbreaking ceremony on Sunday, according to a Reuters report.
Expansion in Chiayi Science Park
The two new facilities will be located in the Chiayi Science Park, bringing TSMC's total number of packaging plants at the site to four. According to the report, the company's first plant in the park has already entered mass production, and a second is expected to begin commercial operations in the near future.
This expansion solidifies the park's role as a critical manufacturing base for TSMC's next-generation semiconductor technologies. The investment is a direct response to a major industry chokepoint, as the world's largest contract chipmaker races to increase its capacity for advanced packaging.
Alleviating AI Supply Constraints
AdThe move is crucial for easing bottlenecks in TSMC's chip-on-wafer-on-substrate (CoWoS) packaging technology. This process is essential for building the high-performance processors used in AI applications, with demand from customers like Nvidia reportedly exceeding current available supply.
Once the four-plant complex is fully operational, it is projected to have a significant economic impact, according to Minister Wu. Key projections cited by Reuters include:
- Annual production value exceeding T$300 billion ($9.35 billion).
- The creation of more than 9,000 jobs.
This investment highlights the critical role of advanced packaging in the semiconductor supply chain and TSMC's commitment to supporting the continued growth of the AI industry.