TSMC ramps packaging push
Chip giant accelerates US and Taiwan expansion to meet surging AI-driven demand for advanced packaging technologies.
TSMC is stepping up efforts to expand its advanced packaging capacity in both the United States and Taiwan, as demand from artificial intelligence applications continues to outpace supply.
According to Taiwan’s Economic Daily, the company is fast-tracking construction of its first advanced packaging facility in the US, known as AP9, with production expected to begin in 2028.
The new plant will focus on high-demand packaging technologies, including InFo (Integrated Fan-Out) and CoWoS (Chip-on-Wafer-on-Substrate), both of which are critical for AI processors that require tight integration of logic chips and high-bandwidth memory.
Industry sources say capacity constraints in these areas have become a key bottleneck as major customers, including Apple and a growing number of AI-focused firms, ramp up orders.
In Taiwan, TSMC is also accelerating expansion of its SoIC (System on Integrated Chips) technology, a 3D stacking approach that enables more compact and higher-performance chip designs.
Monthly output for SoIC is to reach 40,000 wafers by 2027, reflecting the company’s push to scale next-generation packaging alongside its leading-edge semiconductor nodes.
The expansion highlights how advanced packaging has become a central battleground in the semiconductor industry, particularly as AI workloads drive demand for more powerful and energy-efficient chips.
By investing heavily in both domestic and overseas capacity, TSMC is positioning itself to maintain its dominance not just in chip fabrication, but in the increasingly critical packaging layer that underpins modern computing systems.
