[News] TSMC’s CoWoS Demand Surges from NVIDIA, Apple, AMD, Broadcom, Marvell, Monthly Capacity Up 120% in 2024

2023-11-13 Semiconductors editor

The demand for TSMC’s CoWoS advanced packaging is skyrocketing. Following NVIDIA’s expansion confirmation in October, there are reports in the industry that major clients like Apple, AMD, Broadcom, Marvell, and others are also placing additional orders with TSMC.

To meet the demands of these five major clients, TSMC is fast-tracking the expansion of CoWoS advanced packaging capacity. Next year, the monthly capacity will increase by about 20% more than the original doubling target, reaching 35,000 wafers, reported by UDN News.

TSMC has not commented on the capacity deployment for CoWoS advanced packaging. Industry sources believe that the substantial orders from TSMC’s major clients indicate a widespread growth in AI applications, driving the demand for chips such as GPU and AI accelerators.

In response to the continuous increase in AI demand, TSMC had previously announced the doubling of CoWoS advanced packaging capacity expansion for next year but did not disclose the monthly production capacity. Industry reports suggest that TSMC’s CoWoS advanced packaging capacity next year will not only double but will also increase by an additional 20% from the original target, resulting in a total monthly capacity of 35,000 wafers.

NVIDIA currently stands as the main large customer for TSMC’s CoWoS advanced packaging, securing almost 60% of TSMC’s related capacity, which is used in its AI chips such as H100 and A100. Additionally, AMD’s latest AI chip products are in the mass production stage, and the upcoming MI300 chip, expected to launch next year, will adopt both SoIC and CoWoS advanced packaging.

At the same time, Xilinx, a subsidiary of AMD, has been a significant customer for TSMC’s CoWoS advanced packaging. With the continuous growth in AI demand, not only Xilinx but also Broadcom has started increasing orders for TSMC’s CoWoS advanced packaging capacity.

(Image: TSMC)

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