Taiwan Semiconductor Manufacturing Co. is accelerating its advanced packaging expansion across four locations in Taiwan, strengthening its grip on the high-end chip assembly market.
The world’s largest contract chipmaker secured an occupancy permit for its AP6B facility in Zhunan on December 3, while construction at its Chiayi plant has progressed to the steel framework stage since breaking ground in May. The company’s AP5B plant in Taichung is expected to begin operations in the first half of 2024, followed by limited production at the AP8 facility in Tainan by late 2025.
TSMC’s monthly Chip-on-Wafer-on-Substrate (CoWoS) capacity currently stands at 35,000 wafers, contributing 7-9% of total revenue. Market analysts project this capacity will reach 70,000 wafers by end-2025, pushing the segment’s revenue contribution above 10%.
The Zhunan facility spans over 100,000 square meters, while the upcoming Tainan AP8 plant could add 40,000-50,000 wafers in monthly capacity. The expansion also includes capabilities for System-on-Integrated-Chips, chip-photonics integration, and fan-out panel-level packaging technologies.
TSMC targets a 50% compound annual growth rate for CoWoS capacity between 2022 and 2026.
