Chip Talk > TSMC's U.S. Ambitions: A Leap Forward in Chip Packaging
Published August 26, 2025
While Intel navigates complexities with U.S. government investments, Taiwan Semiconductor Manufacturing Company (TSMC) is making strategic advances stateside. According to a TrendForce article, TSMC is fast-tracking its plans for two advanced packaging plants in Arizona, targeting full operation by 2028. This move highlights TSMC's commitment to enhancing its technological foothold in the U.S., particularly amid ongoing geopolitical tensions.
TSMC's new facilities are slated to focus heavily on cutting-edge packaging technologies such as System-on-Integrated-Chips (SoIC) and Chip-on-Wafer (CoW). These technologies are crucial as they enable the integration of multiple chips into a single system, thus boosting performance and efficiency for high-performance computing and AI applications.
The two plants, dubbed AP1 and AP2, will cater to the growing demand for these technologies in the U.S. market. AP1 will prioritize SoIC and CoW, while AP2 will delve into Chip-on-Panel-on-Substrate (CoPoS) engineering. These advanced techniques are increasingly central to the development of AI and high-performance computing sectors.
According to the same TrendForce article, TSMC's advanced packaging processes are attracting interest from major industry players like AMD, Apple, and NVIDIA. With SoIC already in volume production, expectations are high for its integration into future high-end consumer products.
Apple's next M-series processors and AMD's EPYC processors are expected to utilize TSMC's packaging services, while NVIDIA's Rubin platform will incorporate SoIC to bridge its GPU and I/O dies. This development underscores the vital role of innovative semiconductor packaging in the broader tech ecosystem.
TSMC's ambitious expansion into the U.S. is not just about increasing its operational capacity but also about asserting technological leadership. The establishment of these advanced packaging plants can potentially shift dynamics within the semiconductor IP industry by setting new standards for integrated chip design and production.
Furthermore, this move could inspire a wave of similar U.S.-based expansions by other leading semiconductor companies looking to tap into TSMC’s innovative strategies and robust methodologies.
TSMC’s strategic investments in U.S.-based facilities underscore the importance of geographic diversification in semiconductor manufacturing. By investing in advanced packaging technologies on U.S. soil, TSMC not only positions itself as a leader in innovation but also as a crucial participant in the restructuring global supply chain for high-performance and AI-centric computing solutions. This move not only bolsters TSMC’s competitive edge but also supports broader industry growth by meeting the escalating demand for advanced semiconductor solutions.
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