TSMC Two CoWoS Plants to Begin Mass Production in 2028

On December 26, 2024, Chiayi County Mayor, Mr. Weng Zhangliang, delivered his year-end address marking his sixth year in office, announcing significant developments in the local tech industry. The Taiwan Semiconductor Manufacturing Company (TSMC) is set to establish its CoWoS (Chip-on-Wafer-on-Substrate) advanced packaging plants in the Chiayi Science Park. These plants are scheduled to begin mass production by 2028.

According to Mayor Weng, the first CoWoS advanced packaging plant is expected to be completed and equipped by the third quarter of 2025, while the second plant will be finished by 2026. Both plants will start mass production in 2028. In response to the growing demand from high-tech companies, the Southern Taiwan Science Park (STSP) Administration has already launched an expansion plan for the Chiayi Science Park, with a 90-hectare Phase II expansion underway.

To support future industrial development, Mayor Weng highlighted the upcoming construction of the Chiayi Seawater Desalination Plant. The first phase of the project will commence in 2032, providing 100,000 tons of water daily. The second phase, which is currently in the planning stage, will aim to achieve the same output, eventually bringing the total desalinated water supply to 200,000 tons per day. This water will be integrated into the local tap water system, ensuring a stable and sustainable water supply to support regional industrial growth and enhance future competitiveness.

In November 2024, reports surfaced about TSMC slowing down its expansion of CoWoS capacity, originally planned for 2026. Industry sources have indicated that TSMC informed both domestic and international equipment suppliers to delay their equipment delivery and demand schedules for the 2026 expansion. This decision is seen as a strategic move to assess potential risks in light of political uncertainties following the potential return of former President Donald Trump. Experts believe that this delay is a precautionary step to better evaluate market conditions before proceeding with the full-scale expansion.