TSMC’s CoWoS Supply Chain Under Pressure
CoWoS (Chip-on-Wafer-on-Substrate) is TSMC’s advanced packaging technology. It integrates multiple chips on a silicon interposer to enable high bandwidth, lower power consumption, and compact designs, making it crucial for AI accelerators and high-performance computing. TSMC is grappling with a massive demand surge for its CoWoS advanced packaging technology. It is critical for AI accelerators and is driven by market leaders like NVIDIA, Apple, Google, and Amazon. Despite increasing monthly production capacity to 36,000 units and planning to scale to 130,000 by 2026, TSMC faces a significant bottleneck as no competitor can replicate the technology at scale. This demand highlights TSMC’s dominance in packaging and process technologies, with the 5nm and 3nm nodes solidifying its position as the go-to supplier for AI and advanced semiconductor solutions.
My Take
This demand spike underscores the criticality of advanced packaging in AI hardware. TSMC’s strategic investments in CoWoS capacity solidify its leadership. At their current pace, competitors are losing relevance in the AI semiconductor race.
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Credit: wccftech