TSMC Expands Operations with Four New Chip Assembly Plants

Taiwan Semiconductor Manufacturing Co (TSMC) has announced plans to construct four new advanced integrated circuit (IC) assembly plants in Taiwan, further solidifying its position as a leader in the semiconductor industry. While the company has not officially confirmed the details, reports indicate that this expansion is part of TSMC’s broader strategy to enhance its high-end chip production capabilities.

According to a report from the Liberty Times, TSMC intends to establish two of these new facilities in the Chiayi Science Park and the other two in the Southern Taiwan Science Park. The report cites unnamed sources within TSMC’s supply chain, suggesting that the announcement regarding this significant investment could be made by Cliff Hou, TSMC’s senior vice president and chief information security officer, as early as next week.

In a recent investor conference, C.C. Wei, TSMC’s chairman and CEO, revealed that the company is set to increase its capital expenditure to between US$52 billion and US$56 billion this year, a notable rise of over 27 percent compared to last year. This investment underscores TSMC’s commitment to advancing its production technologies, particularly in the realm of sophisticated chip manufacturing.

60 to 80 percent of this year’s capital expenditure will focus on the development of advanced processes, while approximately 10 percent will be allocated to specialty processes. The remaining funds are expected to support high-end IC assembly, testing, photomasking, and other related services.

The establishment of these new assembly plants is pivotal as TSMC ramps up its high-end chip production capabilities. In the fourth quarter of last year, the company began mass production of its 2-nanometer process in both Hsinchu and Kaohsiung. Wei confirmed plans to build additional 2-nanometer fabs in these locations as part of TSMC’s ongoing investment in advanced chip technologies.

TSMC is currently a dominant player in the global semiconductor market, and this expansion reflects the growing demand for advanced chips across various industries. By enhancing its production capacity in Taiwan, TSMC aims to meet the increasing needs of its clients while reinforcing its leadership in the semiconductor sector.

As TSMC continues its ambitious expansion, the industry will be watching closely for further announcements regarding its investments and technological advancements. The company’s strategic decisions not only impact its operations but also play a significant role in the global semiconductor supply chain and economic landscape.