TSMC plans to build an advanced packaging testing and research hub at Kaohsiung's Baipu Industrial Park.
The chipmaker says the three-hectare site will include cleanrooms, laboratories and a training center for semiconductor specialists.
TSMC Vice President Jun He says the facility will speed up testing and validation of advanced packaging materials and equipment by an estimated 25 to 50 percent.
The project is being developed with the Ministry of Economic Affairs and Kaohsiung City Government, and is also intended to help local suppliers enter global semiconductor supply chains.
The expansion comes as AI drives strong demand for advanced packaging.
TSMC expects its CoWoS packaging capacity to grow by more than 80 percent a year through 2027.
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