Taiwan Semiconductor Manufacturing Co (TSMC) is set to enhance its semiconductor testing and validation processes with a new site at the Baipu Industrial Park in Kaohsiung. This initiative, in collaboration with Taiwan’s Ministry of Economic Affairs and the Kaohsiung City Government, aims to boost validation efficiency by 25 to 50 percent, according to TSMC Vice President Jun He.
The upcoming facility will span 3 hectares and include two buildings designed with modular features to accommodate evolving semiconductor technologies. It will house small clean rooms and laboratories dedicated to testing, research, and collaborative development in areas such as advanced packaging technologies, materials, and equipment.
TSMC’s new site is not only a testing ground but also a training hub for advanced packaging specialists. The company plans to foster connections between Taiwanese suppliers and global semiconductor supply chains, aligning with the increasing demand for advanced packaging driven by the rise of artificial intelligence. TSMC anticipates its advanced packaging capacity, particularly chip-on-wafer-on-substrate, to grow at an annual rate exceeding 80 percent through the next year, with strong demand projected to persist through 2029.
The broader Taiwanese semiconductor industry is poised for significant expansion, with projected revenues nearing $300 billion this year, marking an over 40 percent increase from the previous year. Industry experts attribute this growth to the surging demand for AI technologies, which opens up opportunities in memory, high-bandwidth technologies, advanced packaging, and silicon photonics. However, challenges such as energy supply, skilled workforce shortages, and cybersecurity remain pressing concerns for the sector.