Taiwan Semiconductor Manufacturing Co (TSMC) has announced plans to establish a new facility at the Baipu Industrial Park in Kaohsiung, aimed at enhancing the testing and validation processes for semiconductor materials and equipment. This initiative is being undertaken in collaboration with Taiwan’s Ministry of Economic Affairs and the Kaohsiung City Government. According to TSMC Vice President Jun He, the new site is expected to boost validation efficiency by 25 to 50 percent.
The proposed development will span 3 hectares and include two buildings equipped with modular facilities, designed to be adaptable as semiconductor technologies progress. The site will feature small clean rooms and laboratories dedicated to testing, research, and joint development, particularly focusing on advanced packaging technologies, materials, and equipment. Additionally, TSMC plans to create a training base for specialists in advanced packaging, facilitating connections between Taiwanese suppliers and the global semiconductor supply chains.
This expansion aligns with the increasing demand for advanced packaging, driven by the surge in artificial intelligence applications. TSMC anticipates that its capacity for chip-on-wafer-on-substrate advanced packaging will grow annually by more than 80 percent through the next year, with expectations for continued strong demand extending through 2029.
Meanwhile, Taiwan’s semiconductor industry is poised for substantial growth, with revenue projections nearing $300 billion this year, marking an over 40 percent increase from the previous year. Industry experts highlight that the rising demand for AI is opening new opportunities in areas such as memory, high-bandwidth technologies, advanced packaging, and silicon photonics. However, challenges persist, particularly in securing energy supply, skilled workers, and ensuring cybersecurity.