TSMC's Investment Strategies in Taiwan Remain Consistent
In a recent development, reports suggest that the construction of one of TSMC's chip packaging plants in Chiayi County, Taiwan, has been suspended. However, TSMC has not confirmed or denied these claims.
The second chip packaging plant by TSMC in Taiwan, located at the Southern Taiwan Science Park's Chiayi campus, is built to meet the strong demand for artificial intelligence applications. The plants utilise sophisticated chip-on-wafer-on-substrate technology.
The Deputy Minister of Economic Affairs, Ho Chin-tsang, has stated that if the Chiayi plant requires assistance, the ministry would fully cooperate to help speed up its establishment. TSMC has also indicated its intention to seek assistance from local government authorities to improve the anchoring of the Chiayi factory if needed.
The Ministry of Economic Affairs, in response to the reports, has stated that it will not comment on the matter as it is up to TSMC to decide its investments and provide a clearer picture of its plans. The ministry has also mentioned that it will contact TSMC to verify whether equipment from its Chiayi plant is being shifted to the US.
The report by The Economic Daily News further suggests that TSMC might move equipment for the suspended plant to the US due to pressure from the Trump administration and a desire to accelerate its investments in the US. TSMC has already pledged to invest an additional US$100 billion over the next few years in the US, to build three additional wafer fabs, two chip packaging plants, and one research and development center.
TSMC is currently investing US$65 billion to build three wafer fabs in Arizona, with the first beginning commercial production last year. The report on TSMC's potential shift of equipment to the US was additional reporting by Meryl Kao.
It is important to note that TSMC's investment plans in Taiwan remain unchanged. The Chiayi plant, which was scheduled to be completed next year and begin mass production in 2028, is a significant part of TSMC's strategy to strengthen its position in the global semiconductor industry.
The ministry's stance is clear: it is ready to assist TSMC in any way possible to ensure the smooth establishment and operation of the Chiayi plant. The situation is under observation, and further updates are expected to be provided by TSMC in due course.
