Taiwan Semiconductor Manufacturing Co (TSMC) is set to enhance its operations with the development of a new site at the Baipu Industrial Park in Kaohsiung. This initiative aims to accelerate the testing and validation processes for semiconductor materials and equipment, in collaboration with Taiwan’s Ministry of Economic Affairs and the Kaohsiung City Government. According to TSMC Vice President Jun He, this facility is expected to boost validation efficiency by a significant 25 to 50 percent.
The forthcoming 3-hectare site will be equipped with two buildings featuring modular facilities that can adapt to the evolving semiconductor technologies. It will house small clean rooms and laboratories dedicated to testing, research, and joint development related to advanced packaging technologies, materials, and equipment. In addition, TSMC plans to create a training base for specialists in advanced packaging and facilitate connections between Taiwanese suppliers and the global semiconductor supply chains.
This expansion is timely, coinciding with the surging demand for advanced packaging driven by the growth of artificial intelligence (AI). TSMC anticipates its chip-on-wafer-on-substrate advanced packaging capacity to expand at an annual rate exceeding 80 percent through the next year, with strong demand projected to persist until 2029.
The broader Taiwanese semiconductor industry is also poised for substantial growth, with industry officials forecasting revenues to near $300 billion this year, marking an increase of over 40 percent compared to last year. This upswing is attributed to the rising demand for AI, which is unlocking opportunities across various domains, including memory, high-bandwidth technologies, advanced packaging, and silicon photonics. However, challenges remain in areas such as energy supply, availability of skilled workers, and cybersecurity.