TSMC has plans for dedicated chip fabs in the US, but a more important one is creating advanced packaging facilities, which seems to be the next goal of the Taiwan giant.
TSMC to Produce Cutting-Edge CoWoS, SoIC & CoW Packaging Technologies in America, Reducing Taiwan Dependency
Since the Trump presidency, TSMC has expanded its efforts to produce in America on a massive scale, mainly driven by the firm's $100 billion investment in the region, including opening up chip facilities, R&D centers, and advanced packaging facilities. Next to chip production, advanced packaging like CoWoS is one of the most essential elements of a supply chain, and it seems like that is where TSMC will focus next, as according to Ctee, the company plans to start construction of a packaging plant by next year, with completion expected by the end of the decade.
The facility is claimed to be located in Arizona, and TSMC has already begun recruiting CoWoS equipment service engineers. The packaging fab would be responsible for CoWoS and its derivatives, along with SoIC and CoW technologies, which are next-gen solutions designated towards lineups such as NVIDIA's Rubin or AMD's Instinct MI400. According to the initial plan, it is claimed that the packaging facility in Arizona will be linked to the chip fab, since products like the SoIC, will require the use of chips with the interposer layer.
A previous report revealed how US customers still depend on Taiwan for packaging services. American-made chips by TSMC are being flown to Taiwan for packaging, adding to the overall costs. The demand for products like the CoWoS is massive, and it is viable for TSMC to expand packaging production in the US, diversifying the chip supply chain for its partners. More importantly, the Taiwan giant appears to be determined to a pivot towards America, and opening up advanced packaging facilities is apparently the next big step.
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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