# TSMC builds two new advanced packaging plants as AI chip demand reshapes semiconductor supply chains > Source: > Published: 2026-07-13 22:04:47+00:00 # TSMC builds two new advanced packaging plants as AI chip demand reshapes semiconductor supply chains The world's largest contract chipmaker is pouring billions into southern Taiwan facilities that will produce over $9.35 billion in annual output, a move with ripple effects across crypto mining and AI infrastructure. TSMC just told the world it’s not done building. The Taiwanese chipmaking giant is adding two more advanced packaging plants at Chiayi Science Park, bringing the total number of facilities at the site to four. The expansion is a direct response to insatiable demand for AI chips. The four plants combined are projected to generate over 300 billion Taiwan dollars in annual production value. That’s roughly $9.35 billion, and it’s expected to create more than 9,000 jobs in the region. ## What TSMC is actually building Of the four facilities at Chiayi Science Park, one is already in mass production. A second is reportedly close to hitting the same milestone. The two newly announced plants will focus on advanced packaging technologies, most notably CoWoS, which stands for chip-on-wafer-on-substrate. CoWoS is the process that lets chipmakers stack and connect multiple chip components into a single package. It’s the secret sauce behind Nvidia’s most powerful AI accelerators, and it’s been one of the biggest bottlenecks in the entire semiconductor supply chain. TSMC remains the world’s largest contract chip manufacturer by a wide margin. Its client list includes Nvidia, which is among the most prominent customers driving demand for CoWoS capacity. ## The bigger strategic picture TSMC’s Chiayi expansion is part of a broader effort to maintain dominance in an increasingly competitive landscape. The company is also building a facility in Arizona that’s targeted for completion by 2029, a project that speaks to geopolitical pressures around semiconductor supply chain diversification. The sheer scale of the Chiayi investment, four facilities generating nearly $10 billion in annual output, underscores Taiwan’s continued centrality to cutting-edge semiconductor production. **Disclosure:** This article was edited by Editorial Team. For more information on how we create and review content, see our [Editorial Policy](https://cryptobriefing.com/editorial-policy/).