Taiwan Semiconductor Manufacturing Co. (TSMC) is gearing up to establish a new facility at the Baipu Industrial Park in Kaohsiung, aimed at accelerating the testing and validation processes for semiconductor materials and equipment. Collaborating with Taiwan’s Ministry of Economic Affairs and the Kaohsiung City Government, TSMC is set to bolster its efficiency in validation by 25 to 50 percent, according to Vice President Jun He.
This ambitious project will spread across a 3-hectare area, featuring two buildings equipped with modular facilities. These will be adaptable to keep pace with the ever-evolving semiconductor technologies. The site will house compact clean rooms and laboratories dedicated to testing, research, and joint development initiatives focusing on advanced packaging technologies, materials, and equipment.
Moreover, TSMC plans to use this facility as a training ground for advanced packaging specialists, further integrating Taiwanese suppliers into the global semiconductor supply chain. This expansion comes amid a surge in demand for advanced packaging, propelled by the rapid growth in artificial intelligence. The company anticipates its chip-on-wafer-on-substrate advanced packaging capacity to expand at an annual rate exceeding 80 percent through the next year, with sustained demand projected until 2029.
The broader Taiwanese semiconductor industry is on a growth trajectory as well, with expectations that revenue will approach $300 billion this year. This marks an increase of over 40 percent compared to the previous year. Industry leaders point to the burgeoning demand for AI as a catalyst for opportunities in various sectors, including memory, high-bandwidth technologies, advanced packaging, and silicon photonics. However, challenges in energy supply, availability of skilled workers, and cybersecurity remain significant concerns for the industry.