TSMC Strengthens the Local Semiconductor Assembly and Test Supply Chain, Achieving a Win-Win in Efficiency and Resilience

As the rapid development of AI technology drives continuous growth in global semiconductor demand, TSMC is actively advancing its localization strategy to ensure a stable supply of electroplating additives—key chemicals used in advanced packaging processes. Through four key initiatives—production line guidance, equipment optimization, quality inspection, and sample verification—TSMC successfully assisted a Japanese supplier in setting up a factory in Taiwan. This effort reduced the production cycle from 60 days to 20 days and increased transportation efficiency by 90%. In January 2026, the locally produced electroplating additives were introduced at TSMC’s Advanced Backend Fab 2 and are expected to be fully deployed across Advanced Backend Fabs 3, 5, 6, and 8 by the end of the first quarter. This initiative not only strengthens supply chain resilience but also injects fresh momentum into the sustainable growth of Taiwan's semiconductor industry ecosystem.

Electroplating additives are essential chemicals that enable the precise formation of key metallic structures on semiconductor chips. Historically, the supply of these activities has heavily relied on overseas imports. TSMC is committed to advancing the development of local supply chains. After successfully localizing the production of electroplating solutions, the Corporate Analytical Laboratories and the Materials Management Organization proposed that suppliers establish electroplating additive production facilities in Taiwan. This initiative aims to enhance supply efficiency and strengthen the competitiveness of the semiconductor industry. To ensure the smooth setup of production facilities and compliance with process specifications, TSMC has built a comprehensive local supply system. This effort has successfully reduced production cycle by 66% and lowered the carbon footprint associated with overseas transportation. Furthermore, by working directly with the supplier's local factory, information processing efficiency has improved by 98%, effectively strengthening bilateral cooperation and optimizing operational performance.

TSMC considers the establishment of a local supply chain as a key strategy for sustainable operations and continues to drive the localization of chemical production. The Company plans to collaborate with suppliers to complete the construction of a copper electroplating additive production line by March 2026. This initiative aims to ensure the stable supply of critical materials, mitigate operational risks, deepen the practice of a responsible supply chain, and foster shared prosperity within the industry.