Chip maker TSMC to invest $2.8 bn in advanced packaging facility

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading chip maker, has announced its plan to invest approximately T$90 billion ($2.87 billion) in establishing an advanced packaging facility in northern Taiwan. The move comes as TSMC seeks to meet the increasing market demands driven by the AI boom.
TSMC for iPhonesTSMC’s CEO, CC Wei, emphasized the need to address the rising customer demand, particularly for advanced packaging, which involves integrating multiple chips into a single device. This process not only enhances computing power but also lowers the overall cost of high-performance computing solutions.

The chip maker’s advanced packaging technology, known as chip on wafer on substrate (CoWoS), is in high demand, causing capacity constraints. In light of this, TSMC aims to double its capacity for advanced packaging to ease supply shortages. Wei projected that the tightened capacity would likely be resolved by the end of the following year.

Despite TSMC’s position as the leading manufacturer of AI chips, catering to chip designers like Nvidia and AMD, the company has faced challenges due to the slow recovery of the global economy. This slowdown has affected various end markets, tempering TSMC’s overall performance.

The Tongluo Science Park administration has granted official approval for TSMC’s application to lease land, greenlighting the establishment of the new plant in the northern county of Miaoli. This development is expected to create approximately 1500 job opportunities, bolstering the local economy.

In line with its commitment to Taiwan’s semiconductor manufacturing prowess, TSMC plans to retain its most advanced chip technology within the country. Taiwan has long been recognized as a global powerhouse in semiconductor manufacturing, playing a crucial role in powering various technologies, ranging from smartphones to electric vehicles.

The investment in the advanced packaging facility demonstrates TSMC’s dedication to meeting the increasing demand for cutting-edge semiconductor solutions, positioning the company at the forefront of technological innovation in the industry. As the market continues to evolve, TSMC’s expansion is poised to play a vital role in shaping the future of computing and technological advancements worldwide.