TSMC Expands Advanced Packaging Capacity, Weighs New Erlin Plant

Global demand for artificial intelligence (AI) chips is rising, making advanced packaging a critical part of the supply chain for high-performance computing chips. TSMC is therefore expanding both advanced process and advanced packaging capacity across five locations, including Taoyuan, Hsinchu Science Park and Southern Taiwan Science Park, to meet customer demand and reduce the risk of capacity bottlenecks.

The latest reports say TSMC's advanced packaging plant in Chiayi remains under construction, while the company is also said to be evaluating a new facility at the Erlin campus of Central Taiwan Science Park. The move would further expand its packaging footprint in Taiwan. As of publication, TSMC had not confirmed plans for an Erlin plant or disclosed the investment amount, construction timetable or mass-production date.