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TSMC Chiayi Science Park Phase 2 passes environmental review for advanced packaging hub
Thursday, February 5, 2026 at 12:37 AM
TSMC's Chiayi Science Park Phase 2 expansion has passed its environmental impact assessment, solidifying the site as the company's future hub for advanced packaging. The expansion will support critical technologies including CoWoS, SoIC, and Apple's Wafer-Level Multi-Chip Module (WMCM) packaging. Total development covers nearly 90 hectares with production expected by 2031, aiming to integrate advanced 2nm and A14 nodes with high-end backend systems for AI and HPC customers like NVIDIA and AMD.
Context
TSMC has received official environmental approval for a massive 89.58-hectare expansion in southern Taiwan’s Chiayi Science Park, clearing the way for at least three additional advanced packaging plants. These facilities will focus on critical high-end technologies including CoWoS, SoIC, and WMCM, which are essential for producing the high-performance AI accelerators used by NVIDIA, Apple, and AMD. This expansion is a strategic move to permanently resolve the global capacity bottlenecks that have constrained the delivery of next-generation AI silicon.
The project is scheduled for completion by 2031 and is projected to generate an annual production value of approximately NT$210 billion (US$6.65 billion) within the localized supply chain. By aggressively scaling its back-end capabilities, TSMC is reinforcing its vertical integration and securing its dominance over the entire semiconductor manufacturing lifecycle. For investors, this multi-year roadmap signals a significant commitment to infrastructure that supports the long-term growth of the AI hardware market while creating thousands of specialized jobs.
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