TSMC breaks ground on more advanced packaging fabs in Chiayi

https://media.thenextweb.com/2026/07/TSMC.avif

TSMC will build additional advanced packaging fabs in the second phase of the Chiayi Science Park in southern Taiwan, National Science and Technology Council minister Wu Cheng-wen said at a groundbreaking ceremony on Sunday.

Packaging is where the AI supply chain currently pinches, and it is the same constraint that Nvidia’s multi-year HBM4 deal with SK Hynix was written to relieve.

Wu said TSMC would add three advanced packaging facilities in Phase II on a site of roughly 90 hectares that will be developed into a packaging cluster led by the company.

Two facilities in Phase I of the park began mass production in June. Once both phases are running, companies at the Chiayi Science Park are expected to generate more than NT$300bn ($9.35bn) in annual output and support around 9,000 jobs, Wu said.

The expansion is aimed squarely at demand for high-performance computing chips, where TSMC’s CoWoS process, which...

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