TSMC Soars 3.43% on Advanced Packaging Expansion

On April 8, 2025, TSMC's stock rose by 3.43% in pre-market trading, reflecting investor confidence in the company's strategic initiatives and market position.

TSMC has recently made significant strides in its advanced packaging business, with the low-key inauguration of its AP8 factory on April 2. This facility, converted from the former Group 4 LCD panel factory in Nanke, is set to become one of the largest advanced packaging plants in the company's portfolio. The AP8 factory's strategic importance is underscored by its massive scale, with a floor area nearly four times that of the previous AP5 factory and a cleanroom space of approximately 100,000 square meters. This expansion is expected to significantly boost TSMC's production capacity and reinforce its leadership in the advanced packaging sector.

The AP8 factory is slated to commence operations by the end of this year, focusing on the production of CoWoS technology. This technology integrates logic chips and HBM memory in a 2.5D configuration, addressing the growing demand for high-performance chips in AI and high-performance computing applications. TSMC's investment in CoWoS technology is a strategic move to meet the increasing market demand for advanced semiconductor solutions, further solidifying its position as a leader in the industry.

Additionally, TSMC has entered into a preliminary agreement with Intel to form a joint venture for operating Intel's chip manufacturing facilities. This collaboration is seen as a strategic move to address Intel's long-standing challenges and align with the broader industry trends towards advanced semiconductor manufacturing. The joint venture, in which TSMC will hold a 20% stake, is expected to enhance TSMC's global footprint and strengthen its partnership with key industry players.