TSMC Expands Advanced Chip Packaging Plant in Chiayi to Boost AI Growth

TSMC Expands Advanced Packaging in Chiayi to Power AI Chip Growth

Taiwan Semiconductor Manufacturing Company (TSMC) is the worlds leading contract chipmaker, maintaining a monumental pace in strengthening its supremacy in the artificial intelligence (AI) era through notable growth in its progressive chip packaging capacity in Chiayi, Taiwan. This planned move, which includes the introduction of numerous new services, is a direct response to the "very strong" and rapidly rising worldwide demand for high-performance computing (HPC) and AI chips. As of October 2, 2025, although the preliminary declaration and innovative developments of the past year have occurred, the critical phase of apparatus connection and initial construction ramp-up is underway, setting the stage for future mass manufacture and essentially redesigning the landscape of cutting-edge semiconductor engineering.

The determined project underscores TSMCs commitment to addressing a significant bottleneck in the AI supply chain: progressive packaging. Technologies like SoIC (System-on-a-Chip) and CoWoS (Chip-on-Wafer-on-Substrate) are crucial for incorporating the complex mechanisms of modern AI accelerators, allowing the unparalleled presentation and power efficiency needed by advanced AI models. This growth in Chiayi is not simply about increasing output; it demonstrates an active and decisive venture in the foundational substructure that will influence the next generation of AI inventions, ensuring that the essential cutting-edge processing capacity keeps pace with the ongoing developments in chip strategy and AI application expansion.

TSMCs Chiayi development is an extremely technical endeavor, centered on advancing its most advanced packaging technologies. The new services are primarily focused on progressive packaging solutions, such as SoIC and CoWoS, which are crucial for integrating multiple dies comprising logic, high-bandwidth memory (HBM), and other components into a single, high-performance package. CoWoS is a 3D stacking technology that enables higher interconnectivity and shorter signal paths, directly translating to increased information throughput and reduced power consumption for AI accelerators. SoIC is an even more progressive 3D stacking technique, enabling wafer-on-wafer connection and generating highly compact and effective system-in-package resolutions that blur the lines between traditional chips and packages.