News
TSMC continues construction of Chiayi CoWoS packaging plant through holiday
Thursday, February 19, 2026 at 03:47 AM
TSMC construction crews in Chiayi, Taiwan, maintained a 24-hour work schedule through the Lunar New Year holiday to ensure the AP7-P1 CoWoS advanced packaging facility remains on track for its completion deadline.
Context
TSMC is accelerating the construction of its AP7-P1 advanced packaging facility in Chiayi, Taiwan, by maintaining 24/7 operations throughout the Lunar New Year. This high-intensity schedule reflects the persistent shortage of CoWoS (Chip on Wafer on Substrate) capacity, which remains the primary bottleneck for global AI chip production. For investors, this urgency signals that TSMC is prioritizing its roadmap to meet the massive order backlogs of key clients like NVIDIA and Apple.
The Chiayi plant is central to TSMC’s plan to double its CoWoS output by the end of 2024 and sustain a 50% compound annual growth rate in advanced packaging capacity through 2026. By keeping construction on track through the holiday, the company aims to bring the first phase of the complex online by 2025. This aggressive timeline is essential for easing the supply constraints that have previously limited the revenue growth of the broader semiconductor and AI hardware sectors.
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