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TSMC to Build Three Additional Advanced Packaging Fabs in Chiayi Science Park

Taipei Times· July 13, 2026

Taiwan Semiconductor Manufacturing Co. (TSMC) is set to expand its advanced packaging capacity by constructing three new facilities within Phase II of the Chiayi Science Park. This strategic move aims to address the surging global demand for high-performance computing and artificial intelligence chips while establishing a specialized industrial cluster in Southern Taiwan. The expansion is expected to significantly boost regional economic resilience and solidify the area's role as a critical hub for next-generation semiconductor packaging technologies.

National Science and Technology Council (NSTC) Minister Wu Cheng-wen announced the expansion during a groundbreaking ceremony for Phase II of the Chiayi Science Park, a roughly 90-hectare site destined to become an advanced packaging industry cluster. This development follows the recent commencement of mass production at two advanced packaging facilities in Phase I of the park last month. The project is led by TSMC and is designed to meet the intensifying global requirements for advanced packaging technologies used in high-performance computing (HPC) and artificial intelligence applications.

Once both phases of the Chiayi Science Park are fully operational, the facilities are projected to generate an annual output exceeding NT$300 billion (US$9.35 billion) and create approximately 9,000 jobs. Minister Wu highlighted that the Chiayi site will connect with existing science park branches in Tainan, Kaohsiung, Pingtung, Taichung, and Hsinchu to form a comprehensive AI and semiconductor industry corridor. While the current focus is on semiconductor packaging, the park is also expected to attract companies from the aerospace, biotechnology, and precision machinery sectors in the future.

The groundbreaking event was attended by key figures including TSMC vice president for facility construction Arthur Chuang, Chiayi County Commissioner Weng Chang-liang, and several national legislators. The infrastructure investment comes as TSMC continues to see strong financial momentum; analysts at Yuanta Securities Investment Consulting Co. project the company's second-quarter revenue to reach NT$1.276 trillion, representing a 36.7 percent increase year-on-year. This growth is largely attributed to sustained orders for AI chips and high-end mobile processors, which rely heavily on the advanced packaging capabilities being expanded at the Chiayi site.

Read the full story at Taipei Times

Summary generated by RabbitReport AI from public reporting. The full article and original reporting belong to Taipei Times.

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