TSMC to Open New Advanced Packaging Facility in the US by 2029, Strengthening Independent Supply Chain

TSMC is making significant strides towards establishing dedicated chip fabrication facilities in the United States, but its latest initiative focuses on the establishment of advanced packaging operations, marking a pivotal shift for the semiconductor giant.

TSMC to Launch Advanced CoWoS, SoIC & CoW Packaging Technologies in the U. S., Mitigating Taiwan Reliance

Since the Trump administration, TSMC has aggressively ramped up its production endeavors in the U. S., fueled by a staggering $100 billion investment aimed at bolstering regional manufacturing capabilities. This investment encompasses the development of chip manufacturing plants, research and development centers, and now, advanced packaging facilities. Notably, advanced packaging solutions like Chip-on-Wafer-on-Silicon (CoWoS) stand out as critical components in the semiconductor supply chain, hinting at TSMC’s strategic focus. Recent reports from Ctee indicate that the company is poised to commence construction of a packaging plant in Arizona by next year, with an ambitious timeline for completion by the end of the decade.

The anticipated facility will be situated in Arizona, with TSMC already initiating recruitment for CoWoS equipment service engineers. This packaging plant is expected to specialize in CoWoS and its associated technologies, including System on Integrated Chips (SoIC) and Chip-on-Wafer (CoW) solutions. These next-generation technologies are designed to support advanced product lineups from major players like NVIDIA, particularly for their Rubin series, and AMD’s Instinct MI400 products. A key element of the initial plans includes linking this packaging operation with existing chip fabrication efforts, as products like SoIC necessitate chips incorporating an interposer layer.

Close-up of a microchip surface showcasing intricate circuit patterns and grid layout.

Recent analyses have highlighted that U. S.companies still heavily rely on Taiwanese services for packaging. This dependence necessitates transporting American-made chips back to Taiwan for packaging, thereby inflating overall production costs. TSMC’s proactive pivot towards establishing advanced packaging facilities in the U. S.appears to be a crucial step in addressing this dependency, fostering a more localized supply chain.

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