TSMC to build $2.87bn packaging plant

“To meet market needs, TSMC is planning to establish an advanced packaging fab in the Tongluo Science Park,” says the company, “TSMC expects to invest nearly NT$90 billion for the project, and create 1,500 job opportunities. The Science Park Administration has officially agreed to TSMC’s application to lease land at the Tongluo Science Park, and is arranging for a lease briefing.”

Construction will begin in the second half of next year and the plant will begin volume production in 2027.

“Current production capacity is limited, we will expand it as quickly as possible,” says  CEO C.C. Wei, “over  the next five years, sales of semiconductors for AI will increase at an annual rate of about 50%, with the share of TSMC’s total sales expanding from the current level of about 6% to over 10%.”

“For the back end, the advanced packaging side, especially for the CoWoS, we do have some very tight capacity — very hard to fulfill 100% of what customers needed,” says Wei,  “so we are working with customers for the short term to help them to fulfill the demand, but we are increasing our capacity as quickly as possible. And we expect these tightness somewhat be released in next year, probably towards the end of next year. CoWoS will be doubled in 2024.”