Taiwan Semiconductor Manufacturing Co (TSMC) is set to accelerate the testing and validation processes of semiconductor materials and equipment with the development of a new site at the Baipu Industrial Park in Kaohsiung. This initiative is being undertaken in collaboration with Taiwan’s Ministry of Economic Affairs and the Kaohsiung City Government. According to TSMC Vice President Jun He, the new facility is expected to enhance validation efficiency by 25 to 50 percent.
The proposed 3-hectare development will house two buildings equipped with modular facilities that can be adapted to accommodate evolving semiconductor technologies. The site will feature small clean rooms and laboratories dedicated to testing, research, and joint development, focusing on advanced packaging technologies, materials, and equipment. Additionally, TSMC plans to establish a training hub for specialists in advanced packaging, while also facilitating connections between Taiwanese suppliers and the global semiconductor supply chains.
The expansion aligns with the surging demand for advanced packaging solutions, driven by the increasing prominence of artificial intelligence. TSMC anticipates its chip-on-wafer-on-substrate advanced packaging capacity to expand at an annual rate exceeding 80 percent through the next year, with robust demand projected to persist until 2029.
Taiwan’s semiconductor industry is poised for substantial growth, with industry officials forecasting revenue to reach approximately $300 billion this year, marking an increase of more than 40 percent compared to last year. Industry leaders highlight that the rising demand for AI is opening up opportunities across sectors such as memory, high-bandwidth technologies, advanced packaging, and silicon photonics. However, challenges remain in terms of energy supply, skilled workforce availability, and cybersecurity.