TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Company (TSMC) announced plans on Monday (March 18) to construct advanced packaging factories in Chiayi as part of its investment and expansion strategy.

The chipmaking giant will be building two chip-on-wafer-on-substrate (CoWoS) packaging factories in the southwestern county, according to Vice Premier Cheng Wen-tsan (鄭文燦).

These factories will be situated in the Chiayi Science Park in Taibao City, an emerging tech hub covering 88 hectares near the Taiwan High-Speed Rail. The first factory's construction is to be finished by 2026 and is expected to create 3,000 jobs, per the Chiayi County Government.

This development highlights Chiayi's ambition to excel in agriculture and manufacturing. Alongside its abundant land resources, Chiayi aims to establish a seawater desalination plant to ensure a reliable water supply for the water-intensive semiconductor industry.

CoWoS is a precise technology involving stacking and packaging chips onto a substrate, per Trendforce. This approach saves space and boosts processing capabilities.

TSMC is reportedly expanding its CoWoS capacity in Japan, potentially marking a significant shift as this capacity is currently concentrated in Taiwan, according to Reuters.

Last month, TSMC launched the first of two chip fabs in Japan's Kumamoto. This site is anticipated to produce over 100,000 12-inch wafers monthly using various process technologies ranging from 40 to 6/7 nanometers, announced TSMC.