Taiwan Semiconductor Manufacturing Co (TSMC) is advancing its operations with plans to establish a facility at the Baipu Industrial Park in Kaohsiung. This development is aimed at enhancing the testing and validation processes for semiconductor materials and equipment. Collaborating closely with Taiwan’s Ministry of Economic Affairs and the Kaohsiung City Government, TSMC aims to boost validation efficiency by 25 to 50 percent, according to TSMC Vice President Jun He.
The proposed 3-hectare site will house two buildings equipped with modular facilities that can adapt to the evolving semiconductor technologies. These buildings will include small clean rooms and laboratories dedicated to testing, research, and joint development in advanced packaging technologies, materials, and equipment. Additionally, TSMC plans to create a training base to cultivate specialists in advanced packaging, further integrating Taiwanese suppliers into the global semiconductor supply chains.
As the demand for advanced packaging surges, fueled by the expansion of artificial intelligence, TSMC anticipates significant growth in its chip-on-wafer-on-substrate advanced packaging capacity. The company projects an annual growth rate exceeding 80 percent through the next year, with strong demand persisting through 2029. This expansion reflects the broader growth trajectory of Taiwan’s semiconductor industry, which is expected to reach a revenue of around $300 billion this year—a remarkable increase of over 40 percent from the previous year.
Industry experts highlight the burgeoning opportunities driven by the increasing demand for AI, which is impacting sectors such as memory, high-bandwidth technologies, advanced packaging, and silicon photonics. However, they also point out the challenges that come with this growth, including issues related to energy supply, the availability of skilled workers, and cybersecurity concerns.