TSMC Eyes Advanced Packaging Plant at Expanded Longtan Science Park

Taiwan's semiconductor industry continues to be a global powerhouse, and recent developments suggest that Taiwan Semiconductor Manufacturing Company (TSMC) may be eyeing further expansion within the island. Reports indicate TSMC's interest in establishing an advanced packaging plant at the Longtan Science Park Phase 3 (Longke Phase 3). This expansion project, which has been adjusted to cover 104 hectares, is currently navigating a two-stage environmental impact assessment, with land acquisition anticipated by 2029. While TSMC previously withdrew plans for a 2nm wafer fab at this site in late 2023 due to local opposition, the company's continued interest in the Longtan area for advanced packaging highlights the strategic importance of this technology. Panel-level packaging (PLP) is emerging as a critical component for next-generation AI, high-performance computing (HPC), and automotive electronics. Its advantages in terms of efficiency and cost-effectiveness compared to traditional wafer-level packaging make it highly suitable for large AI chips and chiplet architectures. This focus on advanced packaging, rather than cutting-edge chip fabrication at this specific site, suggests a strategic diversification of TSMC's manufacturing capabilities within Taiwan. The Longke Phase 3 expansion is moving through the necessary governmental and environmental review processes, with plans to be submitted to the Executive Yuan for approval. The existing Longtan Science Park already hosts significant players in the semiconductor ecosystem, including TSMC's advanced packaging and testing facilities, further strengthening the industrial cluster. This potential investment underscores Taiwan's commitment to maintaining its lead in the semiconductor supply chain, particularly in advanced packaging technologies that are crucial for future technological advancements.

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TSMC (2330) still maintains its willingness to invest in Longtan land, but considering the needs of the Longtan industrial cluster, electricity consumption, and land area, it is not investing in next-generation Emi-level process wafer fabs, but is planning to invest in the next generation.