Taiwan Semiconductor Manufacturing Co. plans to build two new advanced packaging facilities in Southern Taiwan Science Park, ramping up its chip packaging capabilities with an investment of more than NT$200 billion ($6.3 billion).
The world’s largest contract chipmaker seeks to lease 25 hectares of land in the park’s third phase for the new CoWoS (Chip-on-Wafer-on-Substrate) plants, according to people familiar with the matter. The expansion surpasses the size of TSMC’s similar facility in Chiayi, which spans about 20 hectares.
The move comes as NVIDIA’s CEO Jensen Huang recently dismissed speculation about reduced demand for TSMC’s advanced packaging technology. Chairman Mark Liu also addressed market rumors at an earnings call, noting the company’s ongoing capacity expansion to meet customer needs.
Construction could begin as early as March, with operations potentially starting by April 2026, the people said. TSMC has already initiated procurement procedures after receiving positive feedback from park authorities in mid-January.
The expansion is part of TSMC’s broader plan to build eight CoWoS facilities. Two are under construction in Chiayi, while two more will be converted from an existing Innolux plant. The location for the final two facilities remains under evaluation.
Southern Taiwan Science Park officials confirmed TSMC’s land application but declined to provide details about development plans.
