Taiwan is preparing more land for TSMC's advanced chip packaging plants in Chiayi, good news for the local economy and for TSMC's AI chip supply chain.

• A third expansion phase at the Chiayi science park is being prepared as a site for TSMC to grow its advanced packaging capacity.
• TSMC's first two plants there should start production next year, and a third is already under construction.
• Advanced packaging is the bottleneck for AI chips, so more space means more capacity for the parts customers are waiting on.
• Six other companies have already been approved to move into the park, building a cluster around the chip plants.
• Officials say the plan still has to pass the normal review process for setting up and expanding science parks.

Outlook: Expect the expansion plan to move forward as long as AI chip demand holds, with the current phase of building finishing by 2031.