Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) shares are rising as of right before today’s regular session starts. TSM shares increased 3.95% in pre-market trading to $142.15. Notably, Taiwan Semiconductor stock had a 1.39% boost in value during the previous session, ultimately finishing at $136.75. The bullish trend appears to be caused by the company’s stated expansion goals.
It was reported in a recent Reuters article that Taiwan Semiconductor (TSM) is planning to resurrect the country’s semiconductor industry by building sophisticated packaging facilities in Japan. It is possible that the company will introduce its chip on wafer on substrate (CoWoS) packaging technology to Japan. CoWoS maximizes processing capacity, maximizes available space, and minimizes power usage. TSMC currently conducts all CoWoS activities in Taiwan.
The development of artificial intelligence has resulted in a sharp increase in the demand for sophisticated semiconductor packaging worldwide. To keep up with the demand, chipmakers TSMC, Samsung Electronics, and Intel are increasing their production capacity. This year, CoWoS output will quadruple, according to TSMC CEO C.C. Wei, with more increases scheduled for 2025.
There are also plans for TSMC to build advanced packaging capacity in Chiayi, southern Taiwan. Construction of a new Chiayi CoWoS plant is expected to start in early May. Expanding its advanced packaging capabilities would further TSMC’s operations in Japan. The company recently completed one plant and announced another on the southern island of Kyushu.
Partnerships with Sony and Toyota are integral to these endeavors, with a total investment exceeding $20 billion. TSMC also opened an advanced packaging lab northeast of Tokyo in 2021. Japan is well positioned to be a major player in advanced packaging thanks to its top semiconductor equipment and materials producers and its growing chip manufacturing capabilities.
TSMC’s move into advanced packaging in Japan fits with broader industry trends and strategic alliances, with the goal of keeping pace with worldwide semiconductor demand.
