Home International TSMC to Build $2.9bn Chip Plant in Taiwan due to AI Demand

TSMC to Build $2.9bn Chip Plant in Taiwan due to AI Demand

by Pieter Werner

Taiwan Semiconductor Manufacturing Co (TSMC) is set to invest TWD 90 billion ($2.9 billion) in a new fabrication facility in Taiwan. This strategic move comes as the company gears up to fulfil the accelerating demand for artificial intelligence (AI) chips. CEO C.C. Wei said TSMC aims to double its advanced packaging capacity in 2024 in a bid to cater to the strong demand for AI chips from their customer base, which includes Nvidia and AMD.

Advanced packaging in the semiconductor industry denotes sophisticated techniques used to bundle components from various wafers, thereby generating more powerful computer chips.In addition to expanding its production capacity, the new plant is projected to create approximately 1,500 jobs. The facility will be located in the Tongluo Science Park in Miaoli County, to the south of the company’s main operations in Hsinchu, near Taipei.

Despite reporting a 23% decline in net profit for the second quarter year on year, due to broader economic downturn, TSMC’s customers continue to clamour for more of its AI chips. TSMC-manufactured chips power generative AI, an advanced form of artificial intelligence capable of creating new content such as text and images in response to user prompts. Such technology underpins popular AI technologies, such as OpenAI’s ChatGPT, Google’s Bard, and Dall-E.


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