TSMC and international memory manufacturers increase investment in Taiwan to expand advanced process and packaging production capacity

TSMC continues its large-scale plant expansion plan in Taiwan, with as many as 13 advanced process and packaging plants under construction or planning. (File photo)

[Reporter Gao Jiahe/Comprehensive Report] "Sacred Mountain to Protect the Nation" TSMC continues its large-scale plant expansion plan in Taiwan. As many as 13 advanced process and packaging plants are under construction or planning. Magnet International and local memory manufacturers announced an increase in investment of hundreds of billions to reshape Taiwan's influence in the global memory landscape.

TSMC currently operates 19 factories in Taiwan, and has up to 13 advanced process and packaging factories under construction and planning. 2 Nano bases focus on Baoshan, Hsinchu (Fab 20) and Nanzi, Kaohsiung (Fab 22). Among them, the Kaohsiung factory is planning to move to the fifth phase in one go, and will directly introduce the most advanced A16 process in the future.

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In order to relieve the bottleneck of AI chip packaging production capacity, TSMC is building Taiwan's largest advanced packaging and testing factory (AP7) in the Chiayi Science Park. It has also recently purchased the old Innolux factory in Nanke and converted it into the packaging and testing factory eight (AP8). It has also mobilized seven key factory equipment manufacturers to jointly set up shop in the Pingtung Science Park to create a semiconductor supply chain area.

Micron, Nanya and Winbond have also recently revealed their expansion plans in Taiwan. Micron previously spent approximately NT$8.1 billion to acquire AU Optronics' factory in Tainan and AU Optronics' factory in Houli, Taichung. The purpose is to immediately expand front-end wafer testing and high-bandwidth memory (HBM) production lines to support the mass production of advanced DRAM at the Taoyuan and Taichung factories and consolidate Taiwan's position as Micron's largest manufacturing base in the world.

In addition to the 346.6 billion yuan capital expenditure approved by Nanya’s board of directors in August to invest in a new 5A factory in Nanlin Science and Technology Park, Nanya is also looking for another brand-new 12-inch factory site in central and southern areas (such as Yunlin Huwei Industrial Park and Pingtung Science Park). The potential investment in this new factory site is estimated to exceed 300 billion yuan.

Winbond is concerned about the structural shortage that the memory market may face after 2027. Recently, it was confirmed by the Legal Conference that it has officially launched the "Module B" expansion project of Kaohsiung Luzhu Factory. The factory is expected to start construction in 2027 and enter mass production in 2029. It will significantly increase the proportion of 16nm high-end processes to meet the long-term contract needs of data center customers for 5 to 10 years.

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