Taiwan Semiconductor Manufacturing Co (TSMC) is expanding its advanced chip packaging footprint in the Chiayi Science Park in southern Taiwan.
According to Reuters, which cited the island's science and technology minister, TSMC will add two advanced packaging plants at the site. Reuters reporter Wen-Yee Lee, writing from Taipei on July 13, reported that once all four plants are running, they are expected to generate more than $9.35 billion in annual output.
The scale of the buildout may be even larger. Citing the Taipei Times, MSN reported that TSMC plans to build three additional advanced packaging facilities in Phase II of the Chiayi Science Park. The exact number of new plants therefore varies between accounts, but both point to a significant expansion at the same location.
What makes Chiayi notable is its transformation. As the outlet semivision put it, TSMC is turning the area "from rice fields to AI chips," positioning Chiayi as Taiwan's next advanced packaging hub.
Advanced packaging is the stage where finished chips are assembled and combined, and it has become a critical bottleneck in the race to build hardware for artificial intelligence. By concentrating this capacity in Chiayi, TSMC is deepening Taiwan's role at the center of the global AI chip supply chain — a strategic and economic stake that reaches well beyond the island itself.