Rumor

TSMC Chiayi Advanced Packaging P2 Factory Expected to Begin Mass Production Next Year

Saturday, November 29, 2025 at 08:45 AM

TSMC is accelerating the construction of two CoWoS advanced packaging plants (P1 and P2) in Chiayi, Taiwan, with the P2 factory projected to start mass production in 2026 and P1 in 2027, driven by strong global demand for AI chips. The company recently held an "equipment commencement ceremony" for the facility, which has received its occupancy permit and is entering the equipment installation phase.

Context

TSMC is significantly accelerating its advanced packaging expansion, highlighted by an equipment installation ceremony for its AP7 site in Chiayi on December 4, 2025. This ~15,000 m² facility will host advanced packaging technologies like WMCM, SoIC, and CoPoS. AP7 Phase 2 has begun equipment installation, with production anticipated in 2026, while Phase 1 is slated for mass production in 2026–2027. Concurrently, TSMC has initiated Phase 2 work at its AP8 facility in the Southern Taiwan Science Park this month, which is primarily focused on expanding CoWoS capacity. These expansions are crucial for addressing current bottlenecks in CoWoS and memory, with SoIC monthly output projected to double from ~4–5k wafers in 2024 to ~10k wafers in 2025. Overall CoWoS capacity across TSMC sites is estimated to reach ~32k wafers/month by the end of 2025, with further material expansion expected in 2026.

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