Thursday, June 8th 2023

TSMC Planning Advanced Packaging Capacity Expansion due to Increased Demand for NVIDIA AI Tech

TSMC is quickly reacting to a surge in demand for NVIDIA hardware following an AI industry boom - the Taiwanese semiconductor contract manufacturer is reportedly planning to further expand its advanced packaging capabilities, due to current production lines hitting maximum capacity. News outlets have also cited the growth of 5G technology and Internet of Things (IoT) device markets as contributing factors. DigiTimes Asia reports that clients are snapping up chip-on-wafer-on-substrate (CoWoS) at an increased and unprecedented rate. TSMC has decided to provide NVIDIA - an extremely high profile customer - with an extra 10,000 CoWoS wafers. The article sourced information from a recent company shareholder meeting, where chairman Mark Liu discussed these expansions plans. He outlined improved factory facilities that will result in an additional output of 1,000 to 2,000 wafers per month. TSMC is set to upgrade equipment at its existing facilities in order to meet increasing demand.

Trendforce has also published its evaluation from the same TSMC shareholding meeting: "Due to the generative AI trend initiated by ChatGPT, the demand for advanced packaging orders for TSMC has increased, forcing an increase in advanced packaging capacity. TSMC also pointed out that the demand for TSMC's advanced packaging capacity far exceeds the existing capacity, and it is forced to increase production as quickly as possible. Chairman Mark Liu stated that the current investment in R&D focuses on two legs, namely 3D IC (chip stacking) and advanced packaging...At present, three-quarters of TSMC's R&D expenditure is used for advanced processes, and one quarter for mature and special processes, with advanced packaging falling under mature and special processes."
Sources: DigiTimes, Wccftech, Packaging Gateway
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14 Comments on TSMC Planning Advanced Packaging Capacity Expansion due to Increased Demand for NVIDIA AI Tech

#1
Space Lynx
Astronaut
you mean they can't just wheel over the expansion capacity devices they used for the crypto boom? those poor poor leather jacket babies...
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#2
Dr. Dro
Space Lynxyou mean they can't just wheel over the expansion capacity devices they used for the crypto boom? those poor poor leather jacket babies...
Because screw gamers, we're not a priority anymore
Posted on Reply
#3
Space Lynx
Astronaut
Dr. DroBecause screw gamers, we're not a priority anymore
we were always a means to an end for Jensen
Posted on Reply
#4
Denver
Well, a few tens of thousands more(super expensive) GPUs per month... Good for Nvidia's cash, not much for gamers.
Posted on Reply
#5
evernessince
Dr. DroBecause screw gamers, we're not a priority anymore
Every major tech giant is developing it's own AI chips so eventually Nvidia will have to pivot back to it's traditional markets.
Posted on Reply
#6
Dr. Dro
evernessinceEvery major tech giant is developing it's own AI chips so eventually Nvidia will have to pivot back to it's traditional markets.
Well only if any company achieves a breakthrough in ASIC intended for AI inference and training.

Which is something AMD has been pursuing with Alveo, designs that they've inherited from Xilinx, some all new with their XDNA engine, but they're not quite there yet.
Posted on Reply
#7
kondamin
Since everyone is using interposes it doesn’t really matter even if the llm fad dies down in a couple of months.
Posted on Reply
#8
Icon Charlie
Dr. DroBecause screw gamers, we're not a priority anymore
Agreed. But as an investor I look at long terms solutions.

And in this I can guarantee you that this is just another frenzied bubble of abject stupidity. AI is nice, but is it going to put food on my table?

Nope. People who are leasing my investment properties are putting food on my table.

Now if you remember from not to long ago, George Jetson's flaming lips stated that Ngreedia was going full on into having it's products in the Automobile industry and all of its awesomeness. You can see how that is currently going.

These investment bubbles are always there, being talked and gaslighted by fat heads who have been given the coin to help inflate what is obvious.

The Next major bubble that is currently growing is going to by lithium because of the STRONG AND BRAVE Dojo Caged Keyboard Warriors and their incredibly STUPID buys into the EV market. There are always a sucker born every minute and in my 55 total years in working career, I've seen a lot of suckers in my life.

If I was a a little bit younger I would put serious money on commodities such as metals and food stuff. But I'm older than dirt. I can't do those 80 hour work weeks anymore.

40 hours will just have to due.:pimp:
Posted on Reply
#9
DrCR
Icon CharlieAgreed. But as an investor I look at long terms solutions.

And in this I can guarantee you that this is just another frenzied bubble of abject stupidity. AI is nice, but is it going to put food on my table?

Nope. People who are leasing my investment properties are putting food on my table.

Now if you remember from not to long ago, George Jetson's flaming lips stated that Ngreedia was going full on into having it's products in the Automobile industry and all of its awesomeness. You can see how that is currently going.

These investment bubbles are always there, being talked and gaslighted by fat heads who have been given the coin to help inflate what is obvious.

The Next major bubble that is currently growing is going to by lithium because of the STRONG AND BRAVE Dojo Caged Keyboard Warriors and their incredibly STUPID buys into the EV market. There are always a sucker born every minute and in my 55 total years in working career, I've seen a lot of suckers in my life.

If I was a a little bit younger I would put serious money on commodities such as metals and food stuff. But I'm older than dirt. I can't do those 80 hour work weeks anymore.

40 hours will just have to due.:pimp:
Respect. My years working are a fraction of yours and I’m already beaten down.
Posted on Reply
#10
Dr. Dro
DrCRRespect. My years working are a fraction of yours and I’m already beaten down.
I can't even start... doesn't matter that I've almost got a law degree, speak 4 languages, have multiple skill sets... I'm completely disenfranchised. Like, there's no jobs for a lot of educated people, the market is extremely saturated. So chin up, you won't hit 30 a deadbeat against your will. I'm a month away from that. I'm just glad my family is well off and I can afford to be in this situation... though I do not know for how long. My investments are what keep me going, but every time a bill comes, the money they generate also lowers... it's a vicious cycle.
Posted on Reply
#11
Prima.Vera
Future is definitely AI. But also, the future is not the silicon made by greedy nVideaa and co.
Whoever is first in developing a working quantum computer and working technology to produce Quantum computers, that's game over for TSMC, Samsung, Intel and other foundries. Unless they will develop their own Quantum Computers.
Posted on Reply
#12
Bwaze
The real reason why there's no need any more for price / performance increase in gaming cards. And why isn't anyone panicking, or even reporting, that gaming cards market is in practical freefall, even though we just had a new generation release!
  • JPR found that AIB shipments during the quarter decreased from the last quarter by 12.6%, which is below the 10-year average of -4.9%.
  • Total AIB shipments decreased by -38.2% this quarter from last year to 6.3 million units and were down from 7.16 million units last quarter.
Posted on Reply
#13
Icon Charlie
DrCRRespect. My years working are a fraction of yours and I’m already beaten down.
Hang in there my friend. Believe in yourself and soldier on. In the end, good things do happen in life.
BwazeThe real reason why there's no need any more for price / performance increase in gaming cards. And why isn't anyone panicking, or even reporting, that gaming cards market is in practical freefall, even though we just had a new generation release!
  • JPR found that AIB shipments during the quarter decreased from the last quarter by 12.6%, which is below the 10-year average of -4.9%.
  • Total AIB shipments decreased by -38.2% this quarter from last year to 6.3 million units and were down from 7.16 million units last quarter.
Going to agree with this and add this video. It is about China's Economic slow down problem and it is a serious one. Note this is a 25 minute video. But it is a good insight on how things are on a sector of the global market.


Why is this important? Well a lot of our tech products comes out of China as well as other things.

Next: I've been saying that people do not have discretionary income to spend. The Tech industry have been charging too damned much on low quality product they have been putting out.

Whether it is ASUS or Giggabyte. Ngreedia or AMD. All are guilty IMHO of scamming the customer base with shoddy workmanship as they cut corners on everything.
Posted on Reply
#14
crubino
NVIDIA: goodbye old grumpy PC gamers :D :laugh:
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