TSMC Locks In Taichung Plant Deal and Green Bond Terms as Packaging Price Talk Stays Unconfirmed

TSMC has agreed to buy the equipment and facilities of AUO's Taichung Phase II plant, a transaction valued at NT$38.8 billion excluding tax, according to an agreement reported on October 29. The package covers buildings, cleanrooms and supporting infrastructure, AUO said — meaning TSMC is acquiring a working industrial site rather than bare land.

The distinction matters for how investors read the announcement. TSMC has signed off on the purchase, but the agreement does not by itself confirm that the handover has been completed. It is a concrete investment step, not proof of a finished transfer.

Reported CoWoS Price Rise Remains Unverified

Separately, media reports dated October 27 said TSMC was weighing a 10%–20% increase in prices for advanced CoWoS packaging, citing supply-chain sources. The company has not confirmed any such move. That leaves the two items on very different footings: one is a signed agreement, the other a reported consideration. Investors should not treat the potential revenue uplift as a decided price change, and no link between the two developments has been established.

On the operational side, Reuters reported on October 22 that TSMC had asked suppliers about the feasibility of motors that do not rely on rare earths, prompted by concerns over supply disruptions. The review was still at an early stage — a feasibility inquiry implies neither a committed switch nor any change to equipment already in place.

The next hard data point is the October revenue release scheduled for November 10.

Green Bond Pricing Completed Ahead of Taipei Listing

TSMC has also set the terms of NT$14.8 billion in new green bonds, with listing on the Taipei Exchange planned for November 12, 2026. Proceeds are earmarked for green architecture and environmental protection projects, according to Focus Taiwan, so the financing is directed at the company's environmental infrastructure rather than at expanding chip capacity.

The larger tranche totals NT$12.4 billion, running five years with a 2.30% coupon. Pricing is complete; only the listing remains outstanding. A smaller NT$2.4 billion tranche carries a ten-year maturity and a 2.42% coupon, giving TSMC funding across two horizons within a single issue.

The bonds are unsecured and carry no conversion or exchange rights, which sets them apart from convertible debt — no swap into equity is provided for. This is TSMC's third green bond sale this year and sits within a planned 2026 issuance volume of up to NT$60 billion. Its outstanding green bond stock stands at NT$229.1 billion.

Buyers should keep the coupon distinct from the yield they will eventually earn in secondary trading. Nor should the issue be read as new order intake or an announcement of additional chip capacity — it is not a revenue forecast or a statement about the earnings power of the chip business.

Factory-Level Savings Run Alongside the Financing

Environmental work at the operational level is advancing in parallel. A report published today describes improvements to outdoor air-handling units and the reuse of wastewater, tying the financing news to plant-level measures. Upgrading the irrigation system on those units is expected to cut required pump power by 60% — a figure that refers specifically to the pumping load of that system, not to the energy consumption of an entire fab.

TSMC is thus funding targeted environmental projects while pursuing individual technical savings. The completed pricing makes the financing terms tangible, even as the plant purchase, the unconfirmed packaging price talk and the early-stage supplier review each carry their own degree of certainty.