This expansion focuses on advanced packaging, a critical manufacturing stage where multiple high-performance chips are fused to accelerate processing speeds for complex AI workloads. The new project aims for complete infrastructure readiness by 2031, supported by dedicated wastewater treatment and reservoir systems. TSMC has already initiated mass production at the first facility on-site, with a second factory currently preparing for operations.
In section Market Quotes
TSMC Transforms Chiayi into Global Hub for AI Chip Production
In a rapid industrial pivot, the southern Taiwanese city of Taibao is transitioning from sprawling sugarcane fields into a high-tech center for artificial intelligence hardware. Chiayi county officials confirmed that TSMC will spearhead the second phase of a 90-hectare site development, adding two advanced packaging facilities to break global supply bottlenecks.
The project underscores the company's aggressive scaling strategy, fueled by record financial performance. TSMC reported second-quarter revenue reaching NT$1.270 trillion, or approximately US$39.55 billion. With the company set to announce earnings this Thursday, analysts anticipate a potential upward revision of its 2026 revenue forecasts, cementing the role of these Chiayi facilities in maintaining the firm's dominance over the global AI supply chain.
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