TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Co. (TSMC) is reportedly planning to build an advanced packaging facility in Chiayi or Yunlin County.
The potential move comes as TSMC revises its production timelines due to increased demand for its 5, 3, and 2nm chips, DigiTimes cited industry sources as saying. Chiayi is the more likely of the two locations, sources told the outlet.
TSMC did not comment on the reports.
The Taiwanese chipmaker currently has four advanced packaging plants located in the Hsinchu Science Park, the Central Taiwan Science Park, the Southern Taiwan Science Park, and Longton. They are primarily focused on bumping, advanced testing, and backend 3D packaging, according to DigiTimes.
The world’s largest contract chipmaker is currently building a fifth packaging plant in Miaoli County's Zhunan Township. The large packaging fab is expected to be ready for commercial production in the second half of this year and will focus on 3D stacking, per the report.
TSMC announced on Jan. 13 it intends to spend between US$40 – US$44 billion (NT$1.1 trillion – NT$1.22 trillion) on capital expenditure this year as it looks to upgrade technologies and boost production capacity. The company said its expansion plans are in response to long-term demand for 5G, HPC, PC, server, and automotive chips.