TSMC Plans Three Advanced Packaging Plants at Chiayi Science Park, Targeting Mass Production by 2027 for AI and Quantum Tech

July 19, 2026

Taiwan News Taiwan

Overview

TSMC plans three advanced packaging plants at Taiwan’s Chiayi Science Park, with two slated for mass production by 2027. These facilities will focus on AI, heterogeneous integration, and quantum technology, leveraging TSMC’s CoWoS. The company is also developing next-generation packaging like CoPoS and glass-core substrates, validating processes and materials for large-sized substrates. This strategy addresses soaring AI demand and strengthens TSMC’s packaging leadership.

In Depth

Key Findings

TSMC is progressing with a massive plan to construct three advanced packaging plants in Taiwan’s Chiayi Science Park, with two of these facilities slated to commence mass production by 2027. These new sites will specialize in cutting-edge fields such as Artificial Intelligence (AI) chips, heterogeneous integration packaging, and quantum technology, further solidifying TSMC’s flagship CoWoS (Chip-on-Wafer-on-Substrate) technology.

Technical and Clinical Details

The two plants in the first phase of Chiayi Science Park are targeted for mass production starting in 2027, offering complex chip integration solutions essential for AI accelerators and High-Performance Computing (HPC). While CoWoS remains central, TSMC is also actively developing next-generation packaging technologies, including ‘CoPoS (Chip-on-Package-on-Substrate)’ and ‘glass-core substrates.’ Glass-core substrates are expected to offer superior mechanical stability, thermal properties, and finer wiring capabilities compared to traditional organic substrates, significantly contributing to chip warpage reduction and improved power integrity. The current development phase focuses heavily on validating processes, material characteristics, and flatness for these large-sized substrates. These technologies are crucial for enabling future AI chip performance enhancements and miniaturization.

Background and Industry Context

The explosive demand for AI has pushed requirements for semiconductor chip computational power and data bandwidth to unprecedented levels. To meet this, beyond single-chip miniaturization, advanced packaging technologies that efficiently integrate multiple chiplets have become the new frontier in semiconductor manufacturing. TSMC has long played a leading role in this area, but the surge in AI demand has caused a severe shortage in CoWoS capacity. The investment in Chiayi Science Park is a strategic move to alleviate this bottleneck and support the production of next-generation AI chips for key customers like NVIDIA and AMD. Furthermore, adopting innovative materials such as glass-core substrates is vital for the further evolution of packaging technology and establishing TSMC’s technological advantage over competitors.

Strategic Significance and Outlook

The advanced packaging plants in Chiayi Science Park will solidify TSMC’s position within the AI chip ecosystem. Mass production starting in 2027 will contribute to stabilizing the supply of AI accelerators, fostering further advancements in AI technology. The development of CoPoS and glass-core substrate technologies lays the groundwork for meeting the demands of future AI and quantum computing. These investments are also crucial for Taiwan to maintain its status as a global semiconductor hub, further strengthening TSMC’s strategic advantage in the global high-tech competition. Advanced packaging will continue to be an indispensable element for maximizing AI chip performance and efficiency going forward.

Source: https://www.taiwannews.com.tw/en/news/6400586

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