January 19, 2026 – According to a report by Taiwanese media outlet Liberty Times on the 17th of this month, Taiwan Semiconductor Manufacturing Company (TSMC) is set to make another significant investment in Taiwan this year. The company plans to construct four advanced packaging facilities to meet the surging demand from its AI chip clients.
These new facilities will be divided between two sites. Two will be located in the second phase of the advanced packaging project at Chiayi Science Park, while the other two will be part of the third phase at Southern Taiwan Science Park. An official announcement regarding this decision is expected to be made this week.
It’s worth noting that during TSMC’s quarterly investor conference last week, the company revealed that advanced packaging technology had already accounted for 10% of its total revenue in 2025. Moreover, it is projected to grow at a faster rate than the company’s overall average in the future. In terms of expenditure, advanced packaging, along with mask manufacturing and other areas, is expected to make up 10 – 20% of TSMC’ total capital expenditure for the current year.
Given that TSMC’s new wave of front-end advanced process capacity is set to come online on a large scale between 2027 and 2029, the addition of back-end advanced packaging capacity at this time will facilitate the coordination and synchronization of front-end and back-end production capacities.
