Taiwan Semiconductor Manufacturing Co. (TSMC) has begun advancing construction of what it says will become its largest advanced packaging facility, as the world's leading chipmaker accelerates capacity expansion to meet surging demand from artificial intelligence applications.
The facility, known as the Chiayi Advanced Packaging Plant 7 (AP7), marks TSMC's first major manufacturing footprint in Chiayi County. Equipment installation for the first phase began in December 2025, while construction of the second phase is already underway, positioning the site as a key node in TSMC's global AI-related supply chain.
The expansion comes as demand intensifies for TSMC's 3DFabric™ technologies, which integrate chip design, wafer manufacturing, and advanced packaging. Alongside the capacity build-out, the company has moved to overhaul construction safety practices, adopting what it describes as a “zero tolerance” approach toward workplace hazards.
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AI-Driven Construction Safety
Following the release of a Construction Site Safety Declaration late last year, TSMC restructured oversight at its construction sites, shifting from periodic audits to continuous monitoring. The company separated construction execution from supervision and brought in international third-party experts to oversee on-site safety.
At the Chiayi AP7 site, AI-enabled systems have been deployed to manage risks associated with large-scale, fast-paced construction. These include a smart forklift warning system equipped with surround-view cameras, infrared projection, and sensors designed to reduce collision risks. A 24-hour CCTV control center also uses AI-based recognition to check whether workers are wearing required safety gear, allowing violations to be addressed in real time.
Emergency response standards have also been tightened. According to TSMC, the Chiayi site is staffed with 24-hour ambulances and certified Emergency Medical Technicians (EMTs), enabling response times of under eight minutes—about half the local industry average of 16 minutes. By the end of 2025, the company expects more than 3,000 safety and supervisory personnel across its Taiwan sites to have completed CPR and automated external defibrillator (AED) training.
Beyond regulatory requirements, TSMC has established a safety hazard simulation training center, where new and high-risk workers must complete virtual reality simulations of falls and electric shock scenarios before gaining site access.
