Taiwan Semiconductor (NYSE:TSM) is reportedly considering expanding its advanced chip packaging capacity in Japan, which could significantly impact the global semiconductor industry.
What Happened: TSMC is exploring the possibility of establishing advanced packaging facilities in Japan, sources familiar with the matter informed Reuters. The discussions are preliminary, and no official decisions have been made.
The company is contemplating introducing its chip-on-wafer-on-substrate (CoWoS) packaging technology in Japan. This technology involves stacking chips on top of each other, which enhances processing power, saves space, and reduces power consumption.
The demand for advanced semiconductor packaging has surged globally, driven by the artificial intelligence boom. This has prompted major chipmakers, including TSMC, Samsung Electronics, and Intel, to increase their packaging capacity.
In January, TSMC’s CEO C.C. Wei announced the company’s intention to double CoWos output this year, with additional expansions planned for 2025.
Should TSMC proceed with this expansion, it would further solidify its presence in Japan, where it recently established a plant and announced another. ...