Taiwan is building a new chip packaging hub in Kaohsiung, good news for TSMC's supply chain and the city's older factories looking to upgrade.

• TSMC will move into the Baipu industrial park, which is being built as a cluster for advanced chip packaging materials and equipment.
• Another big international company has also told the city it wants space there, though it has not been named.
• The first phase is already fully booked with TSMC and other chip firms, and construction is due to start this month.
• Of the park's 88 hectares, 53 are set aside for industry, with 25 going to TSMC and its suppliers.
• Kaohsiung wants to push its existing manufacturers to upgrade by feeding off the demand from these global players.

Outlook: Ground breaks in September, with a second phase likely developed alongside the first and a sales pitch to more suppliers this quarter.