TSMC expands advanced packaging
Proposed expansion could create the world's largest advanced packaging cluster in Chiayi.
Taiwan Semiconductor Manufacturing Company (TSMC) is reportedly planning to add five more advanced packaging plants at the Chiayi Science Park in southern Taiwan, potentially bringing the site’s total to 10 advanced packaging fabs.
Taiwanese media, including Liberty Times Net, reported the plans on 28 September, citing sources familiar with the development. The expansion follows a public comment process announced by Taiwan’s National Science and Technology Council on 24 September.
The proposed third phase of the Chiayi Science Park would cover around 198.65 hectares of land near the existing park in Taibao, Chiayi County. The plan remains subject to public consultation, government review and environmental impact assessment.
If approved and completed, the expansion would establish Chiayi as a major global centre for advanced packaging manufacturing, with 10 plants concentrated within the science park.
The reported expansion comes as demand for advanced packaging continues to grow alongside the rapid development of AI and high-performance computing systems. TSMC’s chip-on-wafer-on-substrate (CoWoS) technology is widely used to integrate advanced processors with high-bandwidth memory, making packaging capacity an increasingly important factor in AI accelerator production.
Demand from major customers, including Nvidia, AMD and Apple, has contributed to pressure on advanced packaging capacity. TSMC has been expanding its CoWoS production footprint to address this demand, with the latest proposal indicating further investment in packaging infrastructure in Taiwan.
The proposed Chiayi expansion highlights the increasing scale of advanced packaging manufacturing and its growing strategic importance to the semiconductor supply chain.
