At a recent quarterly conference, TSMC management had to admit that the company cannot fully meet the demand for chip packaging and test services at the moment and the situation may not normalize until the end of next year, but for this the company will have to literally double its core capacity. Today it was announced that one of the new chip packaging companies will emerge in northern Taiwan.
Image source: IBM
Its construction, after Reuterswill cost TSMC $2.9 billion. In order to meet market demand for such services, the company will set up an advanced technology chip packaging plant in Miaoli County’s Tonluo Technology Park, according to the contract chipmaker. The demand for these services is now fueled by the interest of customers in the manufacture of computer accelerators that require high transistor density, which in modern conditions is achieved by a complex spatial arrangement of crystals.
The government of Miaoli County in northern Taiwan approved the construction project and provided a suitable plot of land in the Tonluo Industrial Park area. According to the authorities, this company will be able to provide jobs for up to 1,500 people. As announced last week, next year TSMC management will allocate 70-80% of capital expenditures to the development of advanced lithography, up to 10-20% to maturity, and the remaining 10% to chip packaging projects and other needs. Considering that TSMC’s capital expenditures are not expected to increase significantly compared to the current year (US$32 billion), building a chip packaging plant in northern Taiwan will most likely consume almost the entire target budget.
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