TSMC is opening a new advanced packaging site in southern Taiwan, good news for the AI chip supply chain and for local equipment and materials suppliers.

• TSMC will develop a site in Kaohsiung's Baipu Industrial Park to test and approve chip materials and equipment faster.
• The company says the setup should speed up that testing by 25-50%.
• The site gets small cleanrooms, labs, and modular buildings that can be rebuilt as the technology changes, plus a training center for chip specialists.
• The push is driven by the AI boom, which has sent demand for advanced packaging soaring.
• TSMC expects capacity for its CoWoS packaging technology to grow more than 80% a year through 2027, with strong growth continuing to 2029.

Outlook: Advanced packaging stays the tightest bottleneck in AI chips, and TSMC is racing to widen it while keeping the know-how and suppliers in Taiwan.