This expansion focuses on advanced packaging, a critical manufacturing stage where multiple high-performance chips are fused to accelerate processing speeds for complex AI workloads. The new project aims for complete infrastructure readiness by 2031, supported by dedicated wastewater treatment and reservoir systems. TSMC has already initiated mass production at the first facility on-site, with a second factory currently preparing for operations.

The project underscores the company's aggressive scaling strategy, fueled by record financial performance. TSMC reported second-quarter revenue reaching NT$1.270 trillion, or approximately US$39.55 billion. With the company set to announce earnings this Thursday, analysts anticipate a potential upward revision of its 2026 revenue forecasts, cementing the role of these Chiayi facilities in maintaining the firm's dominance over the global AI supply chain.