Overview
Taiwan Semiconductor Manufacturing Co. (TSMC) is widening its advanced packaging footprint in southern Taiwan with plans to construct two additional facilities at the Chiayi Science Park, according to comments reported from Taiwan's science and technology minister. The new buildings will constitute the third and fourth plants in the company’s Chiayi expansion.
Current status at Chiayi
TSMC’s first advanced packaging plant at the Chiayi site has moved into mass production, while a second plant is slated to commence commercial operations in the near term, the minister said. The additional facilities announced at a groundbreaking ceremony will join those two existing plants, creating a four-plant cluster dedicated to advanced packaging work.
Economic and employment projections
Officials estimate the full four-plant complex could produce more than T$300 billion in annual production value and support the creation of upwards of 9,000 jobs once all facilities are operational. Those figures were provided by Taiwan’s National Science and Technology Council and conveyed by the minister at the event.
Strategic context
The Chiayi Science Park has emerged as a strategic manufacturing base for TSMC’s advanced packaging operations. The company has been accelerating investment in advanced packaging methodologies, including chip-on-wafer-on-substrate (CoWoS) technology, in response to robust demand driven by artificial intelligence workloads. Customers such as Nvidia have contributed to orders that have, at times, exceeded available packaging capacity.
Capacity and supply-chain focus
The latest additions in Chiayi reflect efforts to relieve capacity bottlenecks in packaging and to expand throughput for AI processors, an area the semiconductor industry has identified as a significant point of constraint. The two new plants are part of a broader push to scale advanced packaging output to meet growing customer demand.
Note on information
The details in this report are drawn from remarks attributed to Taiwan’s science and technology minister made during a public groundbreaking ceremony, as reported. Projected production value, job estimates, and timelines referenced here originate from those statements.