On July 16, a serious workplace accident occurred at TSMC's AP7 advanced packaging facility in Chiayi, just 13 days after construction resumed following a previous incident. At around 4 p.m., a 300-kilogram chilled water pipe fell from height during installation and struck a worker on the ground. The worker was rushed to Chiayi Chang Gung Memorial Hospital with a severe head injury and symptoms of brain hemorrhage. He remains under observation in the emergency room. The construction contractor has since suspended operations.

This marks the fourth major accident at TSMC's Chiayi site in 2025. Previous incidents include a forklift crushing a worker's leg, a contractor falling from scaffolding and becoming paralyzed, and a crane guide being fatally struck by a falling two-ton transformer. On May 26, a workplace safety incident halted work at the AP7 building for over a month before it resumed on July 3.

Recent efforts to speed up construction—following damage from Typhoon Danas, which caused scaffolding collapses—appear to have heightened safety risks. The July 16 accident raises further concerns about on-site management and safety enforcement.

The string of accidents has significantly disrupted construction timelines, increasing costs and delaying critical capacity expansion. As the AP7 plant is a key site for advanced packaging—vital to TSMC's AI chip strategy—delays may impact the company's ability to meet growing demand in the booming AI market.

Beyond the immediate operational impact, the incidents have damaged TSMC's reputation, raising customer concerns over delivery reliability and shaking investor confidence. Industry observers warn that such frequent accidents at a leading semiconductor player should serve as a wake-up call for the sector, highlighting the urgent need to strengthen safety protocols, contractor oversight, and worker training.

As of mid-July, TSMC's Chiayi plant has recorded four major accidents in 2025, including one fatality, underscoring the urgent need for improved safety management.