Rumors of TSMC's plans to build a factory in Pingtung due to a short supply of advanced packaging production capacity are circulating in the industry.
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In the hot summer weather, excavators are hard at work in Pingtung Science Park, a project that began construction last year aiming to establish a technology corridor in southern Taiwan alongside Tainan and Kaohsiung. With the buzz about the new science park, there are also rumors in the market that TSMC is contemplating the construction of an advanced packaging plant in Pingtung.
Experts believe that if TSMC selects Pingtung Science Park as its factory location, there should be no major concerns about water, electricity, or land availability. However, challenges would arise in connecting the supply chain from Kaohsiung to Pingtung and in building a local industry cluster.
TSMC has not yet responded to these speculations. Currently, the company's advanced packaging operations span six locations across Taiwan. If the Pingtung plant materializes, it will become the seventh site.
The demand for AI chips is soaring, and Nvidia CEO Jensen Huang has noted that AI has grown a millionfold in the past decade. Major tech companies are competing to secure TSMC’s advanced packaging capacity, particularly its CoWoS technology, which is crucial for AI chip giants.
On the other hand, TSMC’s U.S. expansion is facing workforce challenges, though the recent inclusion of Taiwan in the U.S. government’s SelectTalentUSA program may offer a solution. This program allows foreign companies to hire American high school graduates as paid apprentices, potentially easing labor shortages and creating more conduction for Taiwanese semiconductor supply chains in the U.S.
