No Order Cuts... TSMC Expands Advanced Packaging Plant for Nvidia

Two Additional CoWoS Factories Planned in Nanke
Site Change Possible: "Will Build Where It Can Be Done Faster"
Responding to AI and Advanced Semiconductor Demand... Strengthening Leadership

Taiwan's TSMC is expanding its advanced packaging factories to supply Nvidia. This strategic move aims to dispel rumors of order cuts and respond to the growing demand for artificial intelligence (AI) and advanced semiconductors.

According to local media such as Taiwan's United Daily News (UDN) on the 20th (local time), TSMC plans to build two 'Chip on Wafer on Substrate (CoWoS)' factories and an office building on the Phase 3 site of the Southern Taiwan Science Park (Nanke) in March. The site area is 25 hectares, and the equipment completion is expected by April.

CoWoS is an advanced 2.5D IC packaging technology developed by TSMC, which integrates multiple chips such as central processing units (CPU), graphics processing units (GPU), and high-bandwidth memory (HBM) on a single interposer and then connects it to the substrate. This method optimizes performance, power efficiency, and integration density.

This factory expansion is interpreted as an effort to respond to the increased demand for AI technology chips and strengthen leadership in the advanced packaging solutions sector. In fact, the decision to expand was reported by local media immediately after Jensen Huang, Nvidia's CEO, visited Taiwan.

There is a possibility that the company may change the site to accelerate factory construction in the future. According to UDN, the locations of the two new factories are still under evaluation. An insider stated, "The factory will be built where land can be provided more quickly." According to UDN and others, the Nanke Management Office confirmed that TSMC has submitted a land lease application but refrained from commenting on specific development plans.

The Taiwanese semiconductor industry expects TSMC to expand a total of eight CoWoS factories in the short term, with at least six located in Nanke, where TSMC's headquarters is situated.

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