TSMC expands advanced chip packaging capacity in Taiwan to meet surging AI demand from Nvidia

TSMC to add 2 advanced chip packaging plants in Chiayi, Taiwan minister says

TAIPEI, July 13 (Reuters) - Taiwan Semiconductor Manufacturing Co (TSMC) (2330.TW), opens new tab will add two advanced chip packaging plants in the Chiayi Science Park, the island's science and technology minister said on Sunday. Located in southern Taiwan, the Chiayi Science Park is being developed as one of TSMC's major advanced chip-packaging hubs. TSMC's ⁠first advanced chip packaging plant at the Chiayi Science Park has already entered mass production and its second plant is expected to begin mass production soon, National Science and Technology Council Minister Wu Cheng-wen said at a groundbreaking ceremony. "Today's groundbreaking marks the start of the second phase, ⁠which will include a third and fourth plant," Wu said, adding that the park is expected to generate more than 300 billion Taiwan dollars ($9.35 ⁠billion) in annual production value and create more than 9,000 jobs once all four plants are up ⁠and running. TSMC is rapidly expanding its advanced chip-packaging capacity, including its chip-on-wafer-on-substrate technology, as ⁠demand from artificial intelligence chip designers like Nvidia (NVDA.O), opens new tab continues to outstrip supply. ($1 = 32.0970 Taiwan dollars) Reporting by Wen-Yee Lee; Editing by Thomas Derpinghaus Our Standards: The Thomson Reuters Trust Principles., opens new tab

TSMC Expands Advanced Packaging Capacity in Southern Taiwan to Help Meet AI Demand

By Sherry Qin and Yang Jie Taiwan Semiconductor Manufacturing Co. plans to expand its chip-making capacity with two additional facilities to help meet demand related to artificial intelligence. The government for the southern county of Chiayi announced Sunday that TSMC will lead the second phase of development of a 90-hectare site aimed at becoming a major hub for next-generation semiconductor manufacturing. The new phase will focus heavily on establishing an "advanced packaging cluster," with full completion of the site's infrastructure projected by 2031, according to an official statement. TSMC has begun mass production at its initial advanced packaging facility at the site, while another factory is gearing up for operations. The newly introduced Phase II will add two more advanced chip packaging facilities to the cluster, government officials said. They added that infrastructure such as wastewater facilities and water reservoirs are also being built to support the expansion. TSMC didn't immediately respond to a request for comment. Advanced packaging is a critical process that binds multiple high-performance chips together, boosting processing speeds and efficiency for complex AI tasks. Led by TSMC's expansion, the small city of Taibao in Chiayi county is being transformed from sugarcane fields into the one of the world's largest advanced packaging bases, turning a town of around 40,000 people into a critical hub to break the global AI chip supply bottleneck. The company's capacity to pull off such rapid infrastructure growth is backed by its powerhouse financial performance. TSMC's second-quarter revenue likely reached NT$1.270 trillion, equivalent to US$39.55 billion, according to the company's monthly revenue reports. Markets widely expect the contract chipmaker to raise its 2026 revenue forecast again when TSMC announces its second-quarter earnings on Thursday.