Chiayi Science Park Phase 2 breaks ground for advanced packaging hub

Chiayi Science Park Phase 2, centered on advanced packaging, reflects TSMC’s strategic pivot as Moore’s Law nears its physical limits. This move will accelerate integration between front-end processes and packaging technologies like CoWoS and InFO, forcing equipment makers (e.g., ASM Pacific) and material suppliers (e.g., Sumitomo Bakelite) to prioritize high-density interconnects and thermal solutions. Geopolitically, reliance on U.S.-origin EDA tools and Japanese photoresists exposes the cluster to potential export controls—risking operational cost spikes exceeding 15%. In response, Samsung may double down on its I-Cube ecosystem in Kiheung, Korea, while Intel could fast-track European packaging alliances. Within 18 months, advanced packaging capacity will become scarcer than logic wafer supply, compelling OSATs to evolve into integrated design-manufacturing entities and reshaping global semiconductor value-chain economics.