TSM plans to invest ~$2.9B for advanced chip plant in Taiwan amid rise of AI
Annabelle Chih
Taiwan Semiconductor Manufacturing Company (NYSE:TSM) plans to invest about T$90B ($2.87B) in an advanced packaging facility in northern Taiwan, as demand for AI heats up, Reuters reported.
TSM â which produces chips for some of the world's largest tech companies including Apple (AAPL), Nvidia (NVDA) and AMD (AMD) â plans to set up an advanced packaging fab in the Tongluo Science Park.
The company has received a greenlight from the Tongluo Science Park administration to lease the land for the plant, which is expected to create about 1500 jobs, the report noted.
CEO C.C. Wei said last week that TSM is not able to satisfy customer demand brought on by the AI boom and intends to approximately double its capacity for advanced packaging â which involves placing several chips in a single device, reducing the added cost of more powerful computing.
For advanced packaging, C.C. Wei noted that, especially TSMC's chip on wafer on substrate (CoWoS), capacity is "very tight."
"But we are increasing our capacity as quickly as possible. And we expect these tightening will be released in next year, probably towards the end of next year, C.C. Wei had said during the Q2 call.
TSM saw its Q2 performance impacted by global economic conditions, and the company expects a 10% decline in revenue this year. The chip giant also delayed the start of production from its new plant being built in Arizona to 2025, from 2024, in part due to insufficient amount of skilled workers required.
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