Core Viewpoint - TSMC is considering converting a wafer fabrication plant in Arizona into an advanced packaging facility due to the significant demand from U.S. customers for CoWoS technology, which is crucial for enhancing AI performance [1][2] Group 1: TSMC's Strategic Moves - TSMC plans to establish an advanced packaging factory in Arizona by the end of 2027 to address the supply bottleneck and meet the growing demand from AI GPU and ASIC manufacturers [1] - The company is accelerating the introduction of advanced packaging production lines in the U.S. and intends to repurpose an old chip manufacturing site for this purpose [1] - Previously, TSMC outsourced its packaging services in the U.S. to companies like Amkor, but this situation is changing as TSMC aims to bring these capabilities in-house [1] Group 2: Competitive Landscape - Due to supply constraints in CoWoS packaging, U.S. customers are turning to competitors like Intel for advanced packaging solutions, with companies such as Microsoft, Qualcomm, Apple, and Tesla preparing to adopt Intel's EMIB and Foveros technologies [2] - The shift in demand towards Intel's packaging solutions has prompted TSMC to expedite its production plans in Arizona, highlighting the competitive pressures in the semiconductor industry [2] - The development of TSMC's Arizona project is crucial as it is expected to fulfill a significant portion of the U.S. chip industry's needs [2]