TSMC Breaks Ground on Advanced Packaging Fabs in Chiayi
TSMC will build additional advanced packaging fabs in the second phase of the Chiayi Science Park in southern Taiwan, as announced by National Science and Technology Council minister Wu Cheng-wen during a groundbreaking ceremony on July 13, 2026.
Phase II Expansion Details:
- Location: Approximately 90 hectares in the Chiayi Science Park.
- Facilities: Three advanced packaging facilities.
- Purpose: To address the current bottleneck in AI supply chain and support high-performance computing chip demand, specifically TSMC’s CoWoS process.
Industry Impact:
- Demand Driver: Every AI accelerator relies on this step, making capacity announcements from Chiayi significant for global semiconductor planning.
- Competitive Landscape: Google’s inference chip supply chain also flows through TSMC, adding to the pressure on packaging lines.
- Future Corridor: Wu envisions a connected network of science parks across Taiwan, forming a comprehensive AI and semiconductor corridor.
Financial Highlights:
- Revenue Record: TSMC reported Q2 2026 revenue of T$1.27tn ($39.62bn), up 36% YoY. June revenue alone surged 67.9% YoY to T$442.68bn.
- Earnings Guidance: The company provided no forward outlook but is expected to update its view at the upcoming earnings conference on Thursday, with analysts forecasting a 58.8% Q2 net profit rise.
- Market Position: TSMC becomes Asia’s most valuable listed business, with a market cap surpassing $200bn.
Note:
In light of the above, TSMC’s expansion in Chiayi underscores its pivotal role in revolutionizing high-performance computing chip manufacturing and fostering Taiwan’s tech ecosystem.