The Taiwan Semiconductor Manufacturing Company's (TSMC) bid to rapidly increase its chip packaging capacity in the wake of strong demand by the artificial intelligence industry has faced a setback after potential archaeological ruins were discovered at a site for a new plant. TSMC is planning to build two Chip on Wafer on Substrate (CoWoS) packaging plants in Chiayi, Taiwan, and reports on social media quoted in the Taiwanese press share that the National Taiwan University is recruiting trained personnel for archaeological excavations.
TSMC plans to build two CoWoS packaging plants in Chiyai, and statements made by the Taiwanese government made earlier this year have suggested that the first plant will come online in 2028 after it finishes construction in 2026.
TSMC Might Temporarily Shift CoWoS Packaging Production To Taichung After Surprising Discovery In Chiayi Believe Industry Sources
According to the details, social media reports spread in Taiwan recently that as part of excavations for building new packaging facilities to expand capacity for AI chips, TSMC ran into a setback after apparent archaeological ruins were discovered at the site. TSMC's packaging facilities in Taiwan's Chiyai region were announced earlier this year in March by Taiwan Vice Premier Chen Wen-tsan, a day after he had met with TSMC's vice president of Operations Arthur Chuang, Minister Wang Mei-hua and local government officials in the region.
These facilities will be built in the Chiayi Science Park, and VP Chen added that the first plant will be finished in 2026. Now, according to a report in the Taiwanese press, social media reports have suggested that builders excavating the site might have stumbled upon archaeological remains in the area. Since removing any such remains is trickier and beyond the capacity of typical builders, the report adds that the National Taiwan University is 'urgently recruiting' personnel trained in these operations.
According to industry sources, while the alleged remains discovered at Chiyai might not cause any disruptions to TSMC's long term plans to increase its packaging capacity, the firm might have to make temporary adjustments. These can include choosing an alternative site for the time being, with one potential location being an old facility in Taichung.
The surge in global demand for AI chips, which require advanced packaging techniques for peak performance has forced TSMC to expand its operations. While the firm had previously offered back end packaging as part of a broader range of services, now, they are an equally important part of its product portfolio.
TSMC's packaging capacity is expected to grow to 32,000 wafers per month by the end of 2024 and sit between 50,000 to 55,000 wafers per month in 2025 and up to 65,000 wafers per month in 2026. Wall Street's AI darling NVIDIA and its smaller rival AMD are among TSMC's customers for its packaging products.
About the author: Ramish is a seasoned technology writer and editor with more than a decade of experience. He specializes in semiconductor fabrication and market analysis. With a background in finance and supply chain management - via his bachelors in Finance and a micromasters in supply chain management from MIT - Ramish combines financial rigor with deep industry insight to deliver accurate and authoritative coverage.
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