TSMC Ramps Up CoWoS Advanced Packaging Production to Meet Soaring AI Chip Demand

[AleksandarK]

The burgeoning AI market is significantly impacting TSMC's CoWoS (Chip on Wafer on Substrate) advanced packaging production capacity, causing it to overflow due to high demand from major companies like NVIDIA, AMD, and Amazon. To accommodate this, TSMC is in the process of expanding its production capacity by acquiring additional CoWoS machines from equipment manufacturers like Xinyun, Wanrun, Hongsu, Titanium, and Qunyi. These expansions are expected to be operational in the first half of the next year, leading to an increased monthly production capacity, potentially close to 30,000 pieces, enabling TSMC to cater to more AI-related orders. These endeavors to increase capacity are in response to the amplified demand for AI chips from their applications in various domains, including autonomous vehicles and smart factories.

Despite TSMC's active steps to enlarge its CoWoS advanced packaging production, the overwhelming client demand is driving the company to place additional orders with equipment suppliers. It has been indicated that NVIDIA is currently TSMC's largest CoWoS advanced packaging customer, accounting for 60% of its production capacity. Due to the surge in demand, companies like AMD, Amazon, and Broadcom are also placing urgent orders, leading to a substantial increase in TSMC's advanced process capacity utilization. The overall situation indicates a thriving scenario for equipment manufacturers with clear visibility of orders extending into the following year, even as they navigate the challenges of fulfilling the rapidly growing and immediate demand in the AI market.



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[las]

Intel will soon be ready to lift the burden

 

[Jomale]

Intel will soon be ready to lift the burden

Soo³³³³³n

 

[Daven]

Is chip demand up or down? I’m getting mixed messaging from articles posted on TPU.

 

[las]

Is chip demand up or down? I’m getting mixed messaging from articles posted on TPU.

Up for AI, down for almost everyone else

 

[Daven]

Up for AI, down for almost everyone else

But that’s node specific demand. Articles are talking about ASML equipment cuts in general.

 

[umeng2002]

Poor horses.

 

[Mawkzin]

Up for AI, down for almost everyone else

I would say "down for pc market, up for everyone else" since AI and embedded markets such IoT, cars, 5g/6g is growing fast.

 

[las]

I would say "down for pc market, up for everyone else" since AI and embedded markets such IoT, cars, 5g/6g is growing fast.

Last time I checked both pcs, tablets and phones went down

Chips for cars might have gone up tho, production has been high but not because people are actually buying alot more cars. Tesla has huge inventory waiting to be sold, others as well

They panic'ed because of chip production issues back in mining craze and went crazy, now people don't buy the cars because loans skyrocketed