TSMC to Invest $2.9B in Advanced Chip Facility in Taiwan

TSMC, a leading manufacturer of the world's most advanced processors, including chips found in the latest iPhones, iPads and Macs, plans to invest nearly $2.9 billion in an advanced chip manufacturing facility in Taiwan.

The investment is driven by the "rapid growth of the AI market" which "has caused a surge in demand for TSMC's packaging," according to a report from Taiwan's Central News Agency.

The facility will be located in the Tongluo Science Park in northern Taiwan, TSMC said. The investment is expected to create about 1,500 local jobs.

“Now we see a very large demand for AI. On the client side, we have no support issues,” said TSMC CEO.

Packaging is one of the final stages in the production of semiconductors. It involves placing the chips in a protective case and making connections to connect them to an electronic device.

The central news agency also reported that TSMC's packaging production capacity is "not enough" as Nvidia and AMD compete for capacity. American chip giants Nvidia and AMD are TSMC's two biggest customers.