Taiwan Semiconductor Manufacturing Co (TSMC) is set to establish a new facility in the Baipu Industrial Park, Kaohsiung, aimed at expediting the testing and validation of semiconductor materials and equipment. Collaborating with Taiwan’s Ministry of Economic Affairs and the Kaohsiung City Government, TSMC’s initiative is expected to enhance validation efficiency by up to 50%, according to Vice President Jun He.
The proposed 3-hectare site will house two buildings equipped with adaptable modular facilities to accommodate advancements in semiconductor technology. It will feature small clean rooms and laboratories dedicated to testing, research, and the joint development of advanced packaging technologies, materials, and equipment. Additionally, TSMC plans to use the site as a training hub for advanced packaging specialists and aims to bridge Taiwanese suppliers with global semiconductor supply chains.
This expansion initiative aligns with the surging demand for advanced packaging, fuelled by the rapid growth of artificial intelligence technologies. TSMC anticipates its chip-on-wafer-on-substrate advanced packaging capacity to expand at an annual rate exceeding 80% through the next year, with robust demand projected to persist until 2029.
The broader Taiwanese semiconductor sector is also poised for significant growth, with industry forecasts indicating revenue could reach approximately $300 billion this year—a more than 40% increase compared to the previous year. Industry leaders highlight the burgeoning AI demand as a catalyst for opportunities in memory, high-bandwidth technologies, advanced packaging, and silicon photonics, while also identifying energy supply, skilled workforce, and cybersecurity as ongoing challenges.