TSMC plans to build five additional cutting-edge packaging plants in Taiwan's Chiayi Science Park

Taiwanese media, including the Free Times, reported on the 28th, citing sources, that Taiwan's TSMC, the world's largest foundry (semiconductor consignment production) company, has begun construction of five additional cutting-edge packaging (AP) plants.

The source made this statement, referring to the online opinion collection regarding the Chiayi Complex expansion construction plan (2nd expansion) under the Southern Science Complex Management Bureau, which Taiwan's National Science and Technology Commission (NSTC) released on its website on the 24th.

The source explained that this announcement is in fact the starting point for the third phase of the Chiayi Science Complex plan, and announced that it plans to listen to public opinions for a month, pass the review and decision of the Executive Yuan (cabinet level), and undergo an environmental impact assessment.

The third site will use 198.65ha (hectare, 10,000㎡) of farmland owned by Taiwan Sugar Industry Corporation, a state-owned enterprise, near the Chiayi Science Park in Taibao City, Chiayi County, in the southwestern region.

When construction is completed as planned, a total of 10 cutting-edge packaging factories will be built in Chiayi Science Complex, making the complex the world's largest and the 'capital of cutting-edge packaging.'

Additionally, once the Chiayi Science Park plan is completed, it is expected to form the world's most comprehensive AI and semiconductor industrial corridor along with the Southern Science Park, Central Science Park, and Northern Hsinchu Science Park.

Another source explained the background that TSMC is expanding its capacity to prevent customer withdrawal due to supply shortage due to the explosive increase in demand for TSMC's advanced packaging technology, 'Chip on Wafer on Substrate' (CoWoS), from leading AI semiconductor companies such as NVIDIA, AMD, and Apple.

The third site will also attract related technologies such as artificial intelligence (AI), heterogeneous packaging, silicon photonics, B5G (Beyond 5G) and 6G high-speed broadband networks, quantum technology, and net zero (carbon neutrality).

This plan is related to Taiwan President Lai Ching-de's announcement that he will turn Taiwan into an 'AI island' in response to his administration policy of 'Balanced development of Taiwan'.

According to data from the Southern Science Park Management Bureau, Chiayi Science Park's TSMC Packaging Factory 1 (P1) has begun mass production, and Factory 2 (P2) has begun facility installation. The goal is to complete factories 3 to 5 (P3 to P5) before 2031 on the second phase of the expansion construction site, which covers approximately 90 ha, where the groundbreaking ceremony was held last July.

According to data from Taiwan's Ministry of Economic Affairs, in addition to investments in the United States, Germany, and Japan, TSMC operates a total of 19 fabs (semiconductor production plants) and advanced packaging plants in Taiwan, and is building and planning 13 fabs and packaging plants in areas such as Hsinchu, Taichung, Chiayi, Tainan, and Kaohsiung.

Last year, President Lai announced that he would push for the construction of '10 new AI majors' and create 500,000 AI jobs and 15 trillion Taiwan dollars (approximately 699.7 trillion won) in production by 2040.

At the same time, he emphasized that he would make Taiwan one of the world's top five computing powers and an 'AI island' through the complete establishment of an AI ecosystem.