# TSMC Expands AP7, AP8 as CoWoS Capacity Remains Tight

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/43239
Published: 2026-10-29T05:42:47.000Z
Updated: 2026-10-29T05:42:47.000Z
Section: Business

> Two factories beside TSMC’s Fab 15 are linked to a potential purchase for more than NT$20 billion. The transaction remains unconfirmed.

Taiwan Semiconductor Manufacturing Co. (TSMC) and 精材 (3374) are linked to a potential purchase of two 友達 (2409) factories for more than NT$20 billion, potentially adding space beside TSMC’s Fab 15.

The plants, L7A and L5C, are in Taiwan’s Central Taiwan Science Park. L5C makes laptop panels, while L7A, which began operating in 2006, primarily produces television panels and also makes some monitor panels. Both factories remain in operation. If the reported price is reached, it would exceed the NT$17.1 billion sale of an Innolux factory.

The potential transaction has not been confirmed, and its final price, scope and division of buyer roles have not been disclosed. It comes as CoWoS capacity remains tight and TSMC expands its AP7 and AP8 advanced-packaging facilities.

TSMC owns about 41% of 精材 and is its largest customer, accounting for more than 70% of 精材’s revenue. 精材’s P2 plant has about 23,000 square meters of clean-room space and is already at capacity.

The two companies are also working on a 12-inch integrated voltage regulator (IVR) process using backside copper for high-performance computing chips. Validation and pilot production could be completed as early as late 2026, with mass production projected to begin in the second half of 2027.

If a sale proceeds, 友達 plans to requalify products at other factories to maintain supply. The transfer and closing are expected around the end of 2027.