TSMC's 90B NTD Advanced Packaging Investment

Taiwan's leading semiconductor manufacturer, TSMC, is set to invest nearly 90 billion New Taiwan Dollars in establishing an advanced packaging wafer fab at the Hsinchu Science Park. This move comes as the demand for advanced packaging solutions, driven by the booming AI market, has exceeded supply.

The new wafer fab, planned for the Hsinchu Science Park in Taiwan, will focus on producing cutting-edge packaging solutions to cater to the increasing market needs. TSMC anticipates that this initiative will create approximately 1,500 job opportunities in the local area. The authorities have already given their official approval for the land lease at the Hsinchu Science Park.

AI chip giants like NVIDIA and AMD are racing to secure TSMC's CoWoS capacity due to the soaring demand for AI-related chips. TSMC has identified the CoWoS process as a critical bottleneck in AI chip production and is collaborating closely with its customers to expand capacity. The company projects that CoWoS capacity will double by the end of 2024 compared to 2023 levels, alleviating the current capacity constraints.

TSMC's Chairman, Liu Deyin, acknowledged that the surging demand for advanced packaging solutions in AI applications has led to supply shortages. To meet customer demands for increased capacity, TSMC has outsourced some high-end packaging and testing orders to professional subcontractors and is actively expanding its internal production capacity.

In an unconventional move, TSMC is strategically relocating part of its InFO wafer-level packaging capacity from northern Taiwan to the southern Science Park. This relocation will free up more capacity for CoWoS production, helping to meet the growing market demands.

With this investment and expansion, TSMC aims to bolster its position as a leading provider of advanced electronic components in response to the thriving AI industry.