TSMC Accelerates Plans to Bring Advanced Packaging to the United States as CoWoS Demand Surges
TSMC is moving aggressively to establish advanced packaging operations in the United States as demand for high performance AI compute surges across the industry. According to a detailed report from Liberty Times, the company is now preparing to convert part of its Arizona campus into a dedicated CoWoS advanced packaging facility, with a targeted launch by the end of 2027.
This strategic pivot reflects a critical bottleneck in the global semiconductor supply chain. While AI GPU and ASIC production has expanded within the United States, the absence of local advanced packaging capabilities has forced American firms to ship wafers back to Taiwan for final assembly. NVIDIA, for example, is reported to be transporting Blackwell wafers from the United States to TSMC Taiwan for CoWoS packaging, adding time, cost, and logistical complexity to the process.
TSMC originally planned to rely on local outsourcing partners such as Amkor for packaging solutions. However, the explosive growth in demand from companies across cloud computing, AI training, and enterprise acceleration appears to have prompted an internal reassessment. The decision to introduce TSMC owned and operated advanced packaging lines in Arizona represents a significant strategic expansion and aligns with long term commitments made under the CHIPS and Science Act.
Market pressure is another major factor influencing the move. Several United States based customers, including Microsoft, Qualcomm, Apple, and Tesla, are already evaluating or adopting Intel’s EMIB and Foveros technologies as alternatives to TSMC’s CoWoS due to persistent supply constraints. The shift toward Intel packaging reflects a more competitive landscape and signals that customers are increasingly willing to diversify their advanced packaging suppliers if availability becomes an issue.
By aggressively accelerating its Arizona roadmap, TSMC is positioning itself to secure future share in the rapidly growing AI and high performance compute markets. The Arizona site, once operational, is expected to serve a meaningful portion of domestic demand and support U.S. initiatives to strengthen semiconductor self sufficiency.
The coming years will reveal whether TSMC can scale its American operations quickly enough to maintain its leadership in CoWoS and high density packaging amid intensifying competition and unprecedented industry demand.
Do you believe TSMC’s accelerated U.S. packaging expansion will be enough to counter Intel’s growing momentum in advanced 2D and 3D packaging technologies?
