Southern Taiwan is holding its own against the north of the country in terms of high-tech investment, but worries mount over new competition from across the Pacific.
KAOHSIUNG — Taiwan Semiconductor Manufacturing Co. (TSMC) insisted Thursday, Sept. 18, 2025, that its Taiwan investment commitments remain “unchanged,” following local media reports claiming the company had halted construction of a second IC packaging and testing plant in Chiayi County.
Economic Daily News earlier reported that work on the Chiayi facility — originally slated for completion in 2026 and mass production by 2028 — had been paused, with some equipment potentially redirected to TSMC’s operations in the United States.
When asked to respond, TSMC declined to confirm or deny a suspension, reiterating instead that its broader Taiwan investment program remains intact.
The Chiayi plants, launched in 2024, were designed to incorporate Chip-on-Wafer-on-Substrate (CoWoS) technology, a packaging process in high demand for artificial intelligence applications.
Speculation over the project comes as TSMC deepens its footprint in the U.S., where it is already investing US$65 billion in three fabs in Arizona, the first of which began commercial production last year. The company has also announced plans for an additional US$100 billion over the coming years to fund more fabs, IC assembly facilities, and an R&D center in the U.S.
Southern Taiwan has long fought to keep its share of high-tech investment from flowing north to Hsinchu, and now faces a new competitor across the Pacific.
Earlier this year, TSMC CEO and chairman C.C. Wei (魏哲家) acknowledged that American clients were driving expanded U.S. investments but emphasized that this would not come at the expense of the company’s projects in Taiwan.
Still, analysts and industry watchers caution that Washington’s political pressure and TSMC’s rising U.S. commitments could eventually strain its Taiwan-based operations.
