TSMC is set to invest over $6B in initial funding to build two new CoWoS (Chip-on-Wafer-on-Substrate) facilities at Southern Taiwan Science Park Phase III, with construction slated to start in March 2025 and completion by April 2026. These facilities, covering 25 hectares, will boost TSMC’s advanced packaging capabilities, particularly for CoWoS-L technology, which is projected to dominate with a 50-60% market share by 2025. This expansion aligns with surging demand from NVIDIA, whose upcoming B300 and GB300 lines rely heavily on CoWoS-L technology. Despite rumors of order cuts, NVIDIA CEO Jensen Huang confirmed rising CoWoS demand, reinforcing the critical role of advanced packaging in AI hardware innovation.
My Take
TSMC’s aggressive CoWoS expansion highlights the growing importance of advanced packaging in meeting AI-driven hardware demands. Industry players should closely monitor this trend, as it could reshape supply chain dynamics and create opportunities for upstream and downstream ecosystem collaborations.
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Credit: TrendForce
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