TSMC will establish a semiconductor supply-chain zone at the Pingtung Science Park, joining with partners to create an ecosystem for developing materials, equipment, and packaging technologies needed for next-generation semiconductors.

TSMC Operations and Facility Vice President Dr. Arthur Chuang (莊子壽) said Thursday at the High-Tech Facility International Forum that the National Science and Technology Council’s Southern Taiwan Science Park Administration has begun planning. The administration said it will be Taiwan’s first dedicated semiconductor supply-chain zone, with TSMC leading overall planning. Ten companies have already pledged to join, with construction set to begin in the second half of next year and completion targeted for the second quarter of 2027.

CloudExpress Edge Lab Vice President Nobunaga Chai (柴煥欣) said Friday that as advanced processes evolve, each generational leap can change materials, equipment, and even system architecture, increasing complexity. The new zone, he said, will not only cluster suppliers but also transform their role. Instead of merely selling products, they can collaborate with TSMC on research and development for next-generation processes.

“They are not merely playing the role of a supplier, but becoming part of an ecosystem—working together on R&D, creating the next generation of technologies and products, whether in wafer foundry or IC (Integrated Circuit) packaging. When TSMC moves into the next generation of technology, they will already be TSMC’s suppliers. And TSMC can then leverage the advantages of these new technologies to do business with other world-class semiconductor IC design companies, integrated device manufacturers (IDMs), and system firms,” Chai said.

Chai cautioned, however, that smaller suppliers could face hurdles in overseas expansion, from financial pressures to differences in corporate culture.