According to a report from the Economic Daily News, construction at the STSP Phase III site is expected to begin in March 2025, and the two new facilities are projected to be completed by April 2026, with equipment installation likely to follow shortly afterwards.
The report suggests that the Southern Taiwan Science Park Administration has confirmed TSMC’s submission of a land lease application but declined to disclose details about the company’s specific development plans. TSMC Chairman C.C. Wei has reaffirmed the company’s commitment to expanding CoWoS production capacity during its recent earnings call.
The report, citing industry sources, suggests that the new CoWoS facilities at the STSP will occupy a land area of around 25 hectares.
There had been speculation that NVIDIA would be cutting its CoWoS orders from TSMC, however, NVIDIA CEO Jensen Huang has dismissed those rumours and during a recent visit to Taiwan stated there has been no reduction in CoWoS demand and revealed an increasing need for CoWoS production, particularly for CoWoS-L capacity.
Figures from TrendForce, suggest that NVIDIA is planning to strategically promote the B300 and GB300 lines - which utilise CoWoS-L technology – in 2025, which would help to boost the demand for advanced packaging solutions.
TrendForce has also estimated that, driven primarily by demand for NVIDIA’s Blackwell, the share of CoWoS-L is expected to increase from around 15% in 2024 to as much as 50-60% in 2025, becoming the dominant segment.
TSMC plans to expand eight CoWoS facilities in the short term, including two at ChiaYi Science Park Phase 1 and two facilities acquired from Innolux (AP8). Notably, although ChiaYi Science Park Phase 2 was initially slated to host two additional facilities, the land there will not be available until January 2026 at the earliest, so TSMC has reportedly prioritised constructing two CoWoS facilities at the STSP Phase III site.
The locations for the remaining two planned facilities are still under evaluation.
