TSMC Plans $2.87 Billion Packaging Fab as German Fab Decision Looms
TSMC’s second-quarter revenue fell 10% year-over-year, but the company remains very optimistic about the semiconductor sector’s recovery over the next few years. To this end, the company has announced its intention to build a new advanced chip packaging plant at Tongluo Science Park at a cost of $2.87 billion. Additionally, the company plans to formally unveil its German factory in the coming weeks. CNAs.
“To meet the needs of the market, TSMC plans to establish an advanced packaging factory at Tongluo Science Park,” a TSMC statement said. “TSMC expects to invest nearly NT$90 billion in this project and create employment opportunities for 1,500 people. The Science Park Administration has formally agreed to TSMC’s application for land lease for Tongluo Science Park and is arranging a lease briefing.”
Plans to add this advanced packaging facility are still in the preliminary stages, and TSMC has yet to hold a groundbreaking ceremony. Taiwanese media have speculated that the facility could come online in 2027, so it’s too early to discuss production capacity or other details.
Tonggong’s new facility will likely be similar to TSMC’s recently opened Advanced Backend Fab 6, which supports both front-end 3D stacking methods such as chip-on-wafer (CoW) and wafer-on-wafer (WoW), and back-end packaging technologies such as integrated fan-out (InFO) and chip-on-wafer-on-substrate (CoWoS).
The projected spending of nearly $2.9 billion for the Tonlue packaging facility speaks for itself. This suggests that the project is likely large and encompasses a comprehensive facility capable of providing comprehensive integration of 3DFabric front-end to back-end processes and testing services. The Causeway facility’s production capacity is unknown at this time, but given the growing importance of advanced packaging, it’s logical to expect it to be larger than the advanced backend Fab 6.
In addition to announcing plans to build another advanced packaging facility in Taiwan, TSMC is also boosting its chip production capacity. There are numerous indications (albeit from unofficial sources) that TSMC will announce a German factory in the coming weeks.
Mr. Xu Youge, director of the German Association in Taiwan, the de facto embassy in Taiwan, as an analyst Dan Nistotto saysTSMC may formally announce plans to build a factory near Dresden in the coming weeks, according to Reuters. CNAs. TSMC has officially confirmed that it is in talks with European customers and partners to evaluate the possibility of building a chip- and microcontroller-focused factory for a German automaker. Factory capacity and capabilities are projected to be determined by factors such as customer needs and government support.