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In response to the demand for AI chips, TSMC spent NT$90 billion to build an advanced packaging plant

Update time : 2023-07-31 11:33:34

It was reported that the Bamboo Administration, considering the urgency of TSMC building a factory, decided to allocate a large area of land for the gong to TSMC to build an advanced packaging plant, in order to facilitate TSMC to accelerate the expansion of CoWoS production capacity demand.

TSMC officially confirmed today that in response to the demand of Nvidia, AMD and other manufacturers for advanced packaging such as AI chip CoWoS, it will spend 90 billion NT dollars (IT Home Note: currently about 20.61 billion yuan) to build an advanced packaging plant in Tonggong Township, Miaoli County.
TSMC said this morning that the Hsinchu Science Park Authority has agreed to allocate 7 hectares of land, and the plant is scheduled to be completed by the end of 2026 and mass-produced in the third quarter of 2027. This will be TSMC's sixth packaging production base after Longtan, Zhunan and Nanke. In fact, TSMC only announced the official opening of Zhunan Advanced Packaging and Testing Plant (AP6) last month, which is a major milestone for TSMC's advanced packaging.
TSMC's actions to further expand advanced packaging revealed that TSMC not only holds a large number of advanced logic chip manufacturing orders, but also covers most advanced packaging orders simultaneously. TSMC President Wei Zhejia admitted at the July 20 French conference that the increase in demand for AI is a positive trend for TSMC. It is forecast to grow at an average annual rate of nearly 50%25 over the next five years, accounting for about 10%25 of TSMC's revenue. TSMC has also decided to increase capital expenditures in the construction of CoWoS advanced packaging capacity, and the sooner the better!
It is worth mentioning that this land was originally the base land that Power Semiconductor Power and the world competed for. The Bamboo Administration later ceded the land that had not yet begun the plant's construction plan and leased it to TSMC instead. According to TSMC's proposed plan, TSMC estimates that the gong plant will start land preparation in the fourth quarter of 2023 this year, start construction in the second half of 2024, and complete the plant in 2026. Mass production begins in the first half of 2027 and the third quarter at the latest. The monthly production capacity of 110,000 is the capacity of the 12-inch 3D Fabric process technology, which can create 1,500 jobs after completion.

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