Taiwan Semiconductor Manufacturing Co (TSMC) is set to enhance its semiconductor testing and validation capabilities with a new development at the Baipu Industrial Park in Kaohsiung. This initiative, undertaken in collaboration with Taiwan’s Ministry of Economic Affairs and the Kaohsiung City Government, is designed to bolster the efficiency of validating semiconductor materials and equipment by as much as 25 to 50 percent, according to TSMC Vice President Jun He.
The upcoming facility will span 3 hectares and consist of two buildings equipped with modular facilities. These structures will include small clean rooms and laboratories tailored for testing, research, and joint development in advanced packaging technologies, materials, and equipment. The modular nature of these facilities ensures they can adapt alongside evolving semiconductor technologies.
TSMC’s plans also involve establishing a training hub for advanced packaging specialists, aiming to strengthen the connection between Taiwanese suppliers and the global semiconductor supply chains. This expansion aligns with the increasing demand for advanced packaging, driven by the rapid rise in artificial intelligence applications. TSMC projects that its chip-on-wafer-on-substrate advanced packaging capacity will grow annually by over 80 percent through the next year, with strong demand anticipated to persist until 2029.
This development is set against the backdrop of significant growth in Taiwan’s semiconductor industry, which is expected to generate nearly $300 billion in revenue this year—a more than 40 percent increase from the previous year. Industry leaders have indicated that the surging demand for AI is unlocking opportunities across various sectors, including memory, high-bandwidth technologies, advanced packaging, and silicon photonics. However, challenges in energy supply, a skilled workforce, and cybersecurity continue to pose hurdles for the industry.