Taiwan Semiconductor Manufacturing Co (TSMC) is set to establish a new site at Baipu Industrial Park in Kaohsiung. This development aims to enhance the testing and validation of semiconductor materials and equipment, a move supported by Taiwan’s Ministry of Economic Affairs and the Kaohsiung City Government. According to TSMC Vice President Jun He, the facility has the potential to boost validation efficiency by 25 to 50 percent.
The upcoming 3-hectare site will feature two buildings equipped with modular facilities designed to adapt to evolving semiconductor technologies. This setup will include small clean rooms and laboratories dedicated to testing, research, and joint development in advanced packaging technologies, materials, and equipment. Additionally, TSMC intends to create a training hub for advanced packaging specialists, fostering connections between Taiwanese suppliers and the global semiconductor supply chains.
This expansion occurs amidst a surge in demand for advanced packaging, primarily driven by the rise of artificial intelligence. TSMC forecasts that its chip-on-wafer-on-substrate advanced packaging capacity will grow at an impressive annual rate of over 80 percent through the following year, with robust demand expected to persist until 2029.
The semiconductor industry in Taiwan is poised for substantial growth, with industry officials projecting revenues to nearly reach $300 billion this year, marking a more than 40 percent increase compared to the previous year. Industry leaders highlight that the growing demand for AI creates opportunities across memory, high-bandwidth technologies, advanced packaging, and silicon photonics, although challenges such as energy supply, skilled workforce, and cybersecurity remain.