Asia Express - East Asian ICT
TSMC to Build New Advanced Chip Fab for US$2.9 Billion in Northern Taiwan
July 27, 2023

TSMC (Taiwan Semiconductor Manufacturing Company) has announced its plan to invest NT$90 billion (US$2.9 billion; US$1=NT$30.8) to establish an advanced wafer fab for packaging in response to the increasing demand for CoWoS (Chip on Wafer on Substrate) AI chips. The packaging production capacity of TSMC is currently facing shortages due to the competition from its customers such as Nvidia and AMD. Situated in the Tongluo Science Park, Northern Taiwan, the new facility is expected to create 1,500 job opportunities.

According to the MIC (Market Intelligence & Consulting Institute), TSMC's wafer foundry services for the North American region accounted for over 65% of its total revenue in 2022, driven by the robust demand from U.S. customers for cutting-edge process chips, 12/16nm high-end logic process chips, and mature process chips above 28nm. Despite a slight decline, the shipment value of Taiwan's foundry manufacturing industry sector is projected to reach NT$2.2 trillion (US$71.4 billion) in 2023, down from NT$2.4 trillion (US$77.9 billion) in the previous year.