Taiwan Semiconductor Manufacturing Co. (TSMC) Chairman and President Wei Zhejia confirmed the company’s aggressive push into panel-level fan-out packaging (FOPLP). At a recent event, Wei revealed that TSMC has established a dedicated research and development team and an initial production line for FOPLP, with significant advancements expected within the next three years.
Industry sources indicate that TSMC is also eyeing Innolux’s 5.5-generation factory and considering collaborations with Taiwanese manufacturers to innovate new packaging processes. While TSMC did not confirm these reports, the company emphasized its ongoing search for suitable expansion sites to meet rising demand.
As the average chip area continues to increase by 5 to 10%, the yield of chips from a single wafer decreases, placing additional pressure on wafer and advanced packaging capacities. Experts suggest that transitioning from wafer-level to panel-level processing could be more economical. This shift is partly driven by Intel’s plans to introduce glass substrate technology for next-generation advanced packaging between 2026 and 2030, prompting TSMC to invest in glass substrate research in response to customer requirements.
Currently, TSMC’s Integrated Fan-Out (InFO) technology serves a single customer, but the company is well-versed in fan-out packaging methods. Future opportunities for adopting next-generation advanced packaging, including glass substrates, are anticipated for clients such as Nvidia and AMD, particularly in high-performance computing (HPC) applications. TSMC noted that it customizes solutions based on each customer’s unique needs, leading to varied equipment and requirements across different versions.
TSMC also confirmed progress at its Chiayi packaging plant, which is expected to move to the next site soon. Analysts project that advanced packaging plants, which typically take 8 to 10 months to build, could double or more than double TSMC’s current capacity by next year, aligning with Wei Zhejia’s growth targets.
