Taiwan Semiconductor Manufacturing Co (TSMC) will expand its advanced chip packaging footprint in Taiwan with two additional plants at the Chiayi Science Park, as demand for artificial intelligence (AI) chips continues to outpace supply.
Reuters reported that the expansion marks the second phase of development at the southern Taiwan hub, which will add a third and fourth advanced chip packaging plant. TSMC’s first facility at the park has already entered mass production, while its second plant is expected to begin production soon.
National Science and Technology Council Minister Wu Cheng-wen said the four plants at Chiayi Science Park are expected to generate more than NT$300 billion (about US$9.35 billion) in annual production value and create over 9,000 jobs once fully operational.
The expansion underscores TSMC’s efforts to rapidly scale up advanced packaging capacity, including its chip-on-wafer-on-substrate technology, to meet surging demand from AI chip designers such as Nvidia.
Chiayi Science Park is being developed as one of TSMC’s key advanced chip packaging hubs, supporting the semiconductor giant’s push to strengthen its position in the fast-growing AI semiconductor market.
