TSMC has finalized plans to add five advanced packaging plants at the Chiayi Science Park, expanding its total presence there to 10 plants and aiming to establish one of the world's largest hubs. The plan is being advanced against a backdrop of rising CoWoS demand.
Taiwan's TSMC plans to build five additional advanced packaging plants at the Chiayi Science Park in the south of the island. This would bring the company's total number of plants at the park to 10, including P1 through P5. If realized, the site is expected to become the world's largest advanced packaging production hub.
The expansion is being driven by a sharp increase in demand for AI semiconductors from Nvidia, AMD and Apple. Demand for chip-on-wafer-on-substrate products using the company's CoWoS technology is expanding rapidly, and the company has determined that its current expansion plans alone will not be sufficient to meet long-term demand. CoWoS is a technology for connecting GPUs, HBM and other components on a single substrate, and is an essential process for AI accelerators.