In response to rumors of order reductions, TSMC has announced plans to invest over NT$200 billion (approximately RMB 44.6 billion) in the third phase of the Southern Taiwan Science Park in Tainan City. This substantial investment will facilitate the construction of two new CoWos packaging plants. Despite a decline in CoWos orders from NVIDIA, TSMC remains committed to expanding its production capacity to cater to the burgeoning demand for advanced packaging technologies in the field of artificial intelligence (AI). Notably, in the fourth quarter of 2024, both TSMC's revenue and net profit attained record highs, with AI-related products contributing 15% to the total revenue. This figure is projected to double in 2025, underscoring the company's robust growth in this sector. For 2024, TSMC's capital expenditure stood at $29.76 billion, with ambitions to elevate this to a range of $38 billion to $42 billion in 2025. Approximately 70% of this increased investment will be channeled into advanced process research and development. Furthermore, TSMC has received a significant investment of $6.6 billion from the U.S. government to bolster the construction of a factory in Arizona.
