TSMC to Make investments $2.9 Billion in New AI-Backed Chip Plant in Taiwan

Pushed by a surge in demand for synthetic intelligence, Taiwanese chip maker TSMC plans to take a position almost $2.87 billion (roughly Rs. 23,500 crore) in a sophisticated packaging facility in northern Taiwan, the corporate mentioned on Tuesday.

“To satisfy market wants, TSMC is planning to ascertain a sophisticated packaging fab within the Tongluo Science Park,” the corporate mentioned in a press release.

CEO C.C. Wei mentioned final week that TSMC is unable to fulfil buyer demand pushed by the AI increase and plans to roughly double its capability for superior packaging – which entails putting a number of chips right into a single machine, reducing the added value of extra highly effective computing.

For superior packaging, particularly TSMC’s chip on wafer on the substrate (CoWoS), capability is “very tight,” Wei mentioned after the corporate reported a 23 % fall in second-quarter revenue.

“We’re growing our capability as rapidly as attainable. We anticipate this tightening can be launched subsequent 12 months, in all probability in direction of the tip of subsequent 12 months.”

The world’s largest contract chipmaker mentioned TSMC’s place because the main producer of AI chips – together with for chip designers Nvidia and Superior Micro Gadgets – has not offset broader finish market weak point as the worldwide economic system recovers extra slowly than it had anticipated.

The Tongluo Science Park administration has formally accredited TSMC’s software to lease land, the corporate mentioned, including the brand new plant within the northern county of Miaoli would create about 1500 jobs.

Even because the main Apple provider ramps up its enlargement overseas, it plans to maintain its most superior chip know-how in Taiwan, a worldwide powerhouse in manufacturing semiconductors that energy the whole lot from smartphones to electrical automobiles.

© Thomson Reuters 2023

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