Taiwanese chip giant TSMC (2330. TW), driven by a boom in demand for artificial intelligence, plans to invest roughly T$90 billion ($2.87 billion) in an advanced packaging facility in northern Taiwan, the company announced on Tuesday.
In a statement, the firm stated that it intended to build an advanced packaging facility in Tongluo Science Park to suit market demands.
The CEO of TSMC, C.C. Wei stated last week that the company is unable to meet customer demand brought on by the AI boom and that it wants to approximately quadruple its capacity for advanced packaging, which includes combining numerous chips into one unit to reduce the cost of more potent computing.
Capacity for advanced packaging, in particular TSMC’s chip on wafer on substrate (CoWoS), is “very tight,” according to Wei, who spoke after the company reported a 23% decline in second-quarter profit.
“We are accelerating the expansion of our capabilities. Next year, most likely near the end of the year, we anticipate this tightening to be released.
The largest contract chipmaker in the world claimed that TSMC’s position as the top producer of AI chips, including for chip designers Nvidia Corp (NVDA.O) and Advanced Micro Devices (AMD.O), has not compensated for broader end market weakness as the global economy recovers more slowly than projected.
The Tongluo Science Park management has formally approved TSMC’s request to lease property, according to the business, which also added that the new plant in the northern county of Miaoli would generate roughly 1500 jobs.
The top Apple (AAPL.O) supplier intends to maintain its most cutting-edge chip technology in Taiwan, a world leader in the production of semiconductors used to power everything from smartphones to electric vehicles, even as it cranks up its international development.
