Taiwan Breaks Ground on Kaohsiung Advanced Packaging Park Anchored by TSMC

Taiwan has broken ground on a new advanced packaging industrial park in the southern city of Kaohsiung, with TSMC set to anchor the site through facilities for technology validation and workforce training.

At the groundbreaking ceremony, Kaohsiung Deputy Mayor Lo Ta-sheng said the chipmaker will construct two buildings at the Baipu Industrial Park — a technology validation laboratory and a talent training centre. The facilities are scheduled to begin operations in the fourth quarter of 2029.

President Lai Ching-te, who attended the event, said advanced packaging has become a pivotal arena in global semiconductor competition amid the rapid growth of artificial intelligence and high-performance computing. He said the park would let key equipment and materials suppliers carry out research, testing and validation on site, cutting the time required to move new technologies into mass production and helping local firms join the advanced chipmaking supply chain.

The Baipu park is intended to serve as a testing and validation hub for equipment and materials used in TSMC's advanced packaging, a technology that is increasingly central to producing powerful AI chips. TSMC's advanced packaging is used in advanced AI chips designed by Nvidia, Advanced Micro Devices and Broadcom.

Under the arrangement, TSMC is expected to occupy the park with two buildings, while the Kaohsiung city government will construct factory facilities. The park will span about 88.7 hectares, of which roughly 53.6 hectares will be set aside for industrial use.

The project forms part of Taiwan's broader effort to build a more complete semiconductor ecosystem in the south, complementing TSMC's advanced chipmaking operations at the nearby Nanzih Technology Industrial Park. Taiwan hosts the world's largest semiconductor manufacturing industry along with an extensive network of chip equipment, materials, testing and packaging suppliers. The government has been seeking to expand that ecosystem in southern Taiwan, where TSMC and other technology companies, including ASE Technology Holding and Foxconn, are stepping up investment.

On power supply, Lai said the government had assessed Taiwan's electricity needs through 2035 and that a stable supply would be maintained. He added that the aim was to keep companies in Taiwan and enable the economy to continue developing.