TSMC Expands Advanced Packaging Capacity in Southern Taiwan to Help Meet AI Demand
By Sherry Qin and Yang Jie
Taiwan Semiconductor Manufacturing Co. plans to expand its chip-making capacity with two additional facilities to help meet demand related to artificial intelligence.
The government for the southern county of Chiayi announced Sunday that TSMC will lead the second phase of development of a 90-hectare site aimed at becoming a major hub for next-generation semiconductor manufacturing.
The new phase will focus heavily on establishing an "advanced packaging cluster," with full completion of the site's infrastructure projected by 2031, according to an official statement.
TSMC has begun mass production at its initial advanced packaging facility at the site, while another factory is gearing up for operations. The newly introduced Phase II will add two more advanced chip packaging facilities to the cluster, government officials said. They added that infrastructure such as wastewater facilities and water reservoirs are also being built to support the expansion.
TSMC didn't immediately respond to a request for comment.
Advanced packaging is a critical process that binds multiple high-performance chips together, boosting processing speeds and efficiency for complex AI tasks.
Led by TSMC's expansion, the small city of Taibao in Chiayi county is being transformed from sugarcane fields into the one of the world's largest advanced packaging bases, turning a town of around 40,000 people into a critical hub to break the global AI chip supply bottleneck.
The company's capacity to pull off such rapid infrastructure growth is backed by its powerhouse financial performance.
TSMC's second-quarter revenue likely reached NT$1.270 trillion, equivalent to US$39.55 billion, according to the company's monthly revenue reports. Markets widely expect the contract chipmaker to raise its 2026 revenue forecast again when TSMC announces its second-quarter earnings on Thursday.
Write to Sherry Qin at sherry.qin@wsj.com and Yang Jie at jie.yang@wsj.com
(END) Dow Jones Newswires
July 13, 2026 02:54 ET (06:54 GMT)
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