Powerchip Launches 12-Inch Fab to Meet AI Demand

Powerchip Semiconductor Manufacturing Corp (PSMC) has launched a new 12-inch fab in Miaoli County, focusing on chip-on-wafer-on-substrate (CoWoS) packaging to meet AI device demand. ِAlso will produce interposers, with shipments starting in the second half of this year, aiming to fill the supply gap left by TSMC.

PSMC increased its capital spending by 28% to NT$32 billion (US$984.7 million) to expand CoWoS and wafer-on-wafer technologies. The new P5 fab will initially produce OLED panel driver ICs, Wi-Fi chips, and AI products using 55nm, 40nm, and 28nm technologies, with plans to upgrade to 22nm.

President Tsai Ing-wen highlighted the semiconductor industry’s importance at the fab’s opening. Despite recent losses, PSMC expects improved financial performance throughout the year.

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