Taiwanese media reported on September 28, citing sources, that TSMC, the world's largest foundry (semiconductor contract manufacturing) company, is pushing to build five additional advanced packaging (AP) plants.

The sources made the remarks by referring to the online public consultation regarding the expansion construction plan (Phase 2 expansion) for the Chiayi Park under the Southern Taiwan Science Park Bureau, which was released by Taiwan's National Science Technology Council (NSTC) on its website on September 24.

Accepting this announcement as effectively the starting point for the Chiayi Science Park Phase 3 plan, the sources stated that the project is planned to go through a one-month public opinion listening period, reviews and decisions by the Executive Yuan (cabinet), and environmental impact assessments.

For the Phase 3 site, 198.65 hectares (one hectare is 10,000 square meters) of agricultural land belonging to Taiwan Sugar Corporation, a state-owned enterprise located near the Chiayi Science Park in Taibao, Chiayi County, in the southwestern region, will be utilized.

Once construction is completed as planned, a total of 10 advanced packaging plants will be housed in the Chiayi Science Park, transforming the site into the world's largest scale and the "capital of advanced packaging."

Furthermore, when the Chiayi Science Park plan is completed, it is expected to form the world's most comprehensive AI and semiconductor industrial corridor along with the Southern Taiwan Science Park, Central Taiwan Science Park, and northern Hsinchu Science Park.

Another source explained that TSMC has moved to expand capacity to prevent customer churn amid supply shortages caused by explosive surges in demand for TSMC's advanced packaging technology, Chip on Wafer on Substrate (CoWoS), from leading AI semiconductor companies such as Nvidia, AMD, and Apple.

The Phase 3 site will also pursue the attraction of related technologies such as artificial intelligence (AI), heterogeneous packaging, silicon photonics, B5G (Beyond 5G) and 6G ultra-high-speed broadband networks, quantum technology, and net-zero.

This plan responds to President Lai Ching-te's policy vision of "balanced development of Taiwan" and is related to his stated goal of making Taiwan an "AI island."

According to data from the Southern Taiwan Science Park Bureau, TSMC's Packaging Plant 1 (P1) in the Chiayi Science Park has begun mass production, and Plant 2 (P2) has entered the equipment installation stage.

For the Phase 2 expansion site spanning approximately 90 hectares, where a groundbreaking ceremony was held last July, the goal is to complete plants 3 through 5 (P3 to P5) before 2031.

According to data from Taiwan's Ministry of Economic Affairs, aside from investments in the United States, Germany, and Japan, TSMC operates 19 fabs (semiconductor production plants) and advanced packaging plants combined within Taiwan, and is building and planning 13 fabs and packaging plants in regions such as Hsinchu, Taichung, Chiayi, Tainan, and Kaohsiung.

President Lai stated last year that he would promote the "AI New 10 Major Constructions" to generate 15 trillion New Taiwan dollars (approx. 699.7 trillion won) in production inducement effects and create 500,000 AI jobs by 2040.

He also emphasized that through the complete establishment of the AI ecosystem, he would make Taiwan one of the world's top five computing powerhouses and an "AI island."

(Photo: Yonhap News)