Taiwan Semiconductor Manufacturing Co. (TSMC) will construct three additional advanced packaging facilities in the Chiayi Science Park. The chipmaker broke ground on the park’s second phase to establish a dedicated industry cluster.

This expansion responds to surging global demand for high-performance computing (HPC) chips and CoWoS technology. Surging AI chip orders currently strain TSMC's capacity, causing some business to spill over to competitors.

The new facilities are part of a strategy to increase packaging capacity through 2026 and 2027. TSMC expects the Chiayi Science Park facilities to generate over NT$300 billion (US$9.35 billion) in annual output once fully operational.