[News] TSMC Reportedly Denies Halting 2nd Phase of Chiayi, Taiwan Packaging Plant Amid U.S. Expansion

According to Central News Agency,  concerns have arisen that TSMC’s U.S. investment could crowd out its broader plans. Market rumors suggest the company is accelerating construction of its second and third Arizona fabs while halting the second phase of its advanced packaging plant in Chiayi, Taiwan, with equipment reportedly redirected to Arizona. As the report highlights, TSMC stressed that it will continue investing in Taiwan and that its local plans remain unchanged.

The report also notes that in June this year, the Chiayi County magistrate said TSMC’s first advanced packaging plant in Chiayi would proceed as planned, with equipment installation set for the third quarter. The second plant is expected to be completed in 2026, with both facilities slated to begin mass production in 2028.

MoneyDJ reveals that TSMC’s AP7 site in Chiayi is shaping up as a key hub for next-generation advanced packaging. The campus, planned in eight phases, will begin large-scale CoPoS production in phase 4, the report adds. Per MoneyDJ, the first phase (P1) of AP7 will serve as a dedicated WMCM (multi-chip module) base for Apple, while phases 2 and 3 focus on ramping up SoIC production.

TSMC Accelerates Arizona Expansion

TSMC is pressing ahead with its U.S. expansion. On the company’s second-quarter earnings call, CEO C.C. Wei said that construction of the second fab in Arizona is complete, and that TSMC is working to bring forward the volume production schedule by several quarters to meet customer demand. Wei also noted that construction is underway on TSMC’s third fab in Arizona, which will adopt the 2nm and A16 processes, with the company likewise aiming to accelerate its production timeline.

In addition, TSMC’s two advanced packaging plants in Arizona (AP1 and AP2) are reportedly in site preparation, with construction scheduled to begin in 2H26 and production by 2028, MoneyDJ reports.

In March this year, TSMC announced an additional $100 billion investment in the U.S., raising its total Arizona investment to $165 billion. The plan calls for six wafer fabs, two advanced packaging plants, and one R&D center.

Read more

• [News] TSMC Reportedly Fast-Tracks U.S. Packaging Plants for 2H26 Construction, 2028 Production
• [News] TSMC Reportedly Gears Up for CoPoS Mass Production by 2029, Tapping NVIDIA as First Client

(Photo credit: TSMC)