Taiwanese chip manufacturer, TSMC announced on Tuesday that it will invest around $2.87 billion in an advanced packaging plant in northern Taiwan due to a rise in artificial intelligence demand.
According to a statement from TSMC, the company plans to establish an advanced packaging manufacturing facility in the Tongluo Science Park to meet market demands.
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TSMC’s CEO, C.C. Wei, announced last week that the company is unable to meet customer demand caused by the AI boom, and therefore, it plans to roughly double its capacity for advanced packaging, which involves placing multiple chips in a single device, thereby reducing the additional cost of more powerful computing.
According to Wei, TSMC’s CoWoS chip on wafer-thin substrate (CoWoS) has a tight capacity for advanced packaging, the company’s second-quarter profit decline by 23 percent.
The world’s largest contract chipmaker asserted that TSMC’s position as the top AI chip producer, even for chip designers Nvidia and Advanced Micro Devices, has not adequately compensated for the market’s overall weakness as the global economy recovers slowly.
The Tongluo Science Park administration has given its approval to TSMC’s land lease application, and the company asserts that the new plant in the northern county of Miaoli will result in the creation of roughly 1500 jobs.
Despite ramping up overseas expansion, the leading Apple supplier said it will keep its state-of-the-art chip technology in Taiwan, a global leader in semiconductor production for everything from smartphones to electric vehicles.
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