TSMC is now looking to convert a fab site in Arizona into an advanced packaging facility, as the firm witnesses massive demand for CoWoS from US clients.
TSMC's Advanced Packaging Plant Could Arrive In Arizona By The End of 2027 To Meet Customer Demand
The need for advanced packaging has risen dramatically amongst AI GPU and ASIC manufacturers, mainly since it is one of the technologies through which AI performance has scaled tremendously. Companies like NVIDIA and AMD have shifted their focus towards producing in the US; however, the lack of advanced packaging facilities from TSMC in the nation ultimately forces such clients to look for alternatives, with one of them being to approach competitors. However, it appears that TSMC plans to address this supply bottleneck soon, as according to Taiwan's Liberty Times, the Arizona fab is expected to receive an advanced packaging plant by the end of 2027.
Based on the report, it is claimed that TSMC has accelerated the efforts of introducing advanced packaging lines in the US, and that the Taiwan giant plans to convert an area reserved for a chip fab into an advanced packaging facility. This comes after US clients are in dire need of packaging technologies, and companies like NVIDIA are even involved in shipping Blackwell wafers produced in the US to Taiwan to get them packaged into the end product. TSMC previously had a strategy of outsourcing packaging services in the US to firms like Amkor, but this appears to be changing now.
We do know that US customers are looking towards competitors like Intel for their advanced packaging needs, considering the supply constraints TSMC faces for CoWoS. It was reported that firms such as Microsoft, Qualcomm, Apple, and Tesla are poised to adopt Intel's EMIB and Foveros technologies as an alternative to TSMC's services. It appears that the interest influences the Taiwan giant in Team Blue's packaging solutions, which is why introducing production in Arizona is now being accelerated significantly.
It would be interesting to see how TSMC's Arizona project unfolds, especially considering that the facility alone is expected to cater to a substantial portion of the US industry's chip demand.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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