The Taiwan Semiconductor Manufacturing Company (TSMC)'s new packaging plant, currently under construction in Chiayi, Taiwan, has recently dealt with multiple setbacks. The first setback involved a worker's death due to a falling switchboard. After safety regulators gave the go-ahead to resume work, Typhoon Danas hit Chiayi for the first landfall in the region in 120 years. The Chiayi plant is expected to finish its first CoWoS plant in the current quarter, and the plant's construction was delayed by a month earlier this year after a safety accident in May.
TSMC's New Packaging Plant In Chiayi, Taiwan Faces Multiple Setbacks
Typhoon Danas is the fourth typhoon to hit Taiwan this year, and a rare one that impacted the island's western regions. As of Monday, two people have been killed, while more than 500 people have been injured due to the typhoon's impact on western Taiwan. Danas is the first typhoon to hit Chiayi, Taiwan, in 120 years, with TSMC's under-construction facilities in Chiayi also taking some impact.
The impact was limited to some scaffolding collapsing at the site, according to the Southern Science Park Administration, reports Taiwan's Economic Daily. The scaffolding collapse was the second setback to the site, and the Daily suggests that the site's contractor has sped up construction to account for the delay.
The slight setback from the typhoon was the second one for the facility in 2025. It followed an accident in May when a construction worker was hit by a switchboard and died of the injuries. Taiwan's safety authorities took note of the incident and, after the investigation, allowed TSMC to resume construction activities at the site on the 3rd.
TSMC's CEO C.C. Wei has previously asserted that he will personally apologize for any safety incidents at the firm's sites. Wei commented that TSMC was aware of its social responsibility and was not in the semiconductor business simply to make money. The site being built in Chiayi will be responsible for packaging chips in the aftermath of significant semiconductor demand due to AI applications.
While TSMC has adequate capacity for manufacturing advanced chips, high-power AI applications also require chip dies to be packaged together. Due to increased demand, the Taiwanese firm has expanded its chip packaging facility with the packaging machines at Chiayi, which is expected to manufacture fully packaged chips for NVIDIA and other companies.
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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