TSMC Plans Additional Factory Construction in Southern Taiwan

Taiwan's TSMC, the world's largest foundry (semiconductor contract manufacturer), is planning to build an additional factory in the southern Pingtung region, fueled by the AI boom, according to Taiwanese media citing sources on the 25th.

The source said that the recent demand for advanced packaging driven by AI was stronger than expected, leading to this decision, and that in addition to the existing factory around the Southern Science Park, the Pingtung region was also included as a future base for factory construction plans.

TSMC currently operates one global research center, four 12-inch wafer factories, four 8-inch factories, one 6-inch factory, and five advanced packaging factories within Taiwan.

[Image source=AFP Yonhap News]

Separately, TSMC is constructing 2nm (nanometer, one billionth of a meter) factories in the Baoshan area of the northern Hsinchu Science Park and the Nanzi Science Park area in southern Kaohsiung. Advanced packaging factories are also being built in Miaoli Tongluo in the north and Taibao in Chiayi County in the south, targeting mass production in the third quarter of 2027 and in 2028, respectively.

Another source stated that TSMC's push for additional factory construction is related to Chairman Wei Zhejia's announcement during the Q2 earnings briefing that the sales forecast for this year would be revised upward.

In fact, foreign media such as United Daily News, citing Taiwan's Digitimes, reported that TSMC's 'Chip on Wafer on Substrate' (CoWoS) production increased about threefold from 12,000 units per month last year to 32,000 units this year. They forecast that production will increase to approximately 70,000 units in 2025 and 93,000 units in 2028, and stated that production will increase further once the factory expansion plans are completed.

This content was produced with the assistance of AI translation services.