TSMC to establish advanced packaging hub in Kaohsiung industrial park

Taipei, Sept. 2 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) will establish a presence in the Baipu Industrial Park in Kaohsiung to accelerate the testing and validation of semiconductor materials and equipment, a company executive said Tuesday.

TSMC Vice President of Advanced Packaging Technology and Service Jun He (何軍) said the company is working with the Ministry of Economic Affairs and the Kaohsiung City government on the plan, which is expected to improve validation efficiency by 25-50 percent.

TSMC will also conduct process research and development at the park with the aim of building a world-class training base for advanced packaging talent and connecting local suppliers with global supply chains, He said at a global 3D IC summit held ahead of SEMICON Taiwan, which opens Wednesday.

According to He, the company is planning to develop a 3-hectare site in the Baipu Industrial Park that will include two buildings featuring modular facilities that can be reconfigured as technology evolves.

The site will include small cleanrooms and laboratories for testing and joint development involving advanced packaging technologies, equipment and materials, as well as a training center for high-level semiconductor process and equipment specialists, he said.

The move comes as demand for advanced packaging has surged amid the rapid growth of artificial intelligence applications, He said.

Given that demand, TSMC expects its CoWoS advanced packaging capacity to grow at a compound annual growth rate of more than 80 percent through 2027, with strong growth expected to continue through 2029, He said.