TSMC to Expand Advanced Packaging Factory in Chiayi; to Cater Intel’s Competition

Founder Morris Chang is now primarily concerned about competition from a resurgent Intel rather than Samsung.


Taiwan Semiconductor Manufacturing Company (TSMC) has recently announced plans to establish its seventh advanced packaging facility in Chiayi, Taiwan.

This move has sparked significant interest and speculation within the industry, as it marks another step in TSMC’s strategy to expand its manufacturing capabilities.

  • This expansion is part of a larger initiative by TSMC to boost its production capacity across Taiwan.
  • The high demand for AI chips, which rely on advanced packaging like CoWoS (Chip-on-Wafer-on-Substrate), is driving this growth.
  • Construction on the Chiayi facility is expected to begin this year (2024).
  • This will likely be TSMC’s seventh advanced packaging and testing plant. 

In this blog post, we will delve into the details of TSMC’s expansion plans, the significance of Chiayi as a location, and the implications for the semiconductor industry.

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TSMC’s Expansion Plans:

TSMC’s decision to establish a new advanced packaging facility in Chiayi is part of its broader strategy to meet the growing demand for advanced packaging solutions.

The company has been actively seeking new locations for expansion, with such as a focus on optimizing its manufacturing capabilities and reducing logistical challenges.

The Chiayi facility is expected to be a key hub for TSMC’s advanced packaging operations, catering to the increasing demand for AI and high-performance computing (HPC) applications.

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Significance of Chiayi as a Location:

Chiayi’s selection as the site for TSMC’s new facility is strategic for several reasons.

Firstly, its proximity to TSMC’s existing facilities in Southern Taiwan, particularly the advanced semiconductor fabrication plants, such as enables efficient transportation of wafers to the packaging facility.

This geographical advantage minimizes transportation time and logistical costs, enhancing TSMC’s overall operational efficiency.

Additionally, Chiayi’s location within the Chiayi Science Park provides access to a skilled workforce and robust infrastructure, further supporting TSMC’s expansion efforts.

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Implications for the Semiconductor Industry:

TSMC’s expansion into Chiayi signifies its commitment to meeting the evolving needs of the semiconductor market.

Insiders within the semiconductor industry highlight a shifting dynamic for TSMC, with founder Morris Chang now primarily concerned about competition from a resurgent Intel rather than Samsung.

Intel, TSMC’s rival, is set to unveil separate financial reports for chip development and Intel Foundry Services (IFS) starting in the second quarter of this year. This move by Intel is aimed at safeguarding the assets and expertise of its third-party customers.

Furthermore, with international chip design firms increasingly turning to Intel for orders due to concerns about diversified supply chains, Intel’s outsourcing strategy appears to be gaining traction. Intel has recently achieved notable milestones in foundry processes, such as the implementation of PowerVia backside power delivery technology, the utilization of glass substrates, and the development of Foveros Direct for advanced packaging.

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TSMC’s decision to establish a new advanced packaging facility in Chiayi reflects its proactive approach to addressing the dynamic demands of the semiconductor industry.

Such as strategically expanding its manufacturing footprint, TSMC aims to strengthen its position as a global leader in semiconductor manufacturing and advance the development of cutting-edge technologies.

The establishment of the Chiayi facility marks an important milestone in TSMC’s journey towards innovation and growth.

Editorial Team
Editorial Team
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