TSMC’s new plant in the northern county of Miaoli would generate roughly 1500 jobs. Credit: Ascannio via Shutterstock.

Taiwan Semiconductor Manufacturing Company (TSMC) is planning to invest around T$90bn ($2.88bn) to set up a chip packaging unit in Taiwan, reported Reuters.

The investment is aimed at helping TSMC cater to the surge in demand driven by the artificial intelligence (AI) boom.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

“To meet market needs, TSMC is planning to establish an advanced packaging fab in the Tongluo Science Park,” the chipmaker was quoted as saying.

Last week, TSMC CEO CC Wei said the business will nearly double its capacity for advanced packaging to meet growing customer demand.

The news comes after the company reported a 23% drop in net profit in its second quarter in comparison with the year-ago quarter due to lower revenue and margins.

Following the result announcement, Wei stated that the capacity for advanced packaging, particularly TSMC’s chip on wafer on substrate (CoWoS), is “very tight.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“We are increasing our capacity as quickly as possible. We expect this tightening will be released next year, probably towards the end of next year,” the company’s chief added.

According to the firm, the Tongluo Science Park management has formally approved TSMC’s request to lease land.

It added that the new plant in the northern county of Miaoli would generate roughly 1,500 jobs.

Even though TSMC is expanding internationally, it intends to retain its most cutting-edge semiconductor technology in Taiwan.

The company is in talks with the German government for subsidies for its plant there.

Japan has already agreed to provide JPY400bn ($2.8bn) in support to TSMC to help in the building of a facility in Kumamoto Prefecture.