[News] TSMC CoWoS Supply-Demand Gap Reportedly Seen Narrowing from 20% to 10% by End-2026

TSMC continues to accelerate its advanced packaging capacity expansion, helping move the industry closer to supply-demand balance. According to Economic Daily News, institutional investors said that as TSMC and its partners aggressively build out new advanced packaging capacity, the CoWoS supply-demand gap is expected to narrow significantly from around 20% currently to about 10% by the end of 2026, with conditions likely to improve further in 2027.

A key driver of this capacity expansion is the rapid buildout of the CoWoS family. The report estimates that TSMC’s monthly CoWoS capacity could reach a record 120,000 to 140,000 wafers in 2026. Including an additional 50,000 to 60,000 wafers of new capacity from OSAT partners, total industry capacity could approach 200,000 wafers per month.

The anticipated capacity additions are expected to help ease industry bottlenecks. TrendForce expects the severe shortage of global 2.5D packaging capacity to begin moderating by 2027, supported by order spillover and TSMC’s plan to expand CoWoS capacity by more than 60% by 2027.

Underscoring the scale of that expansion, TSMC forecast during its Taiwan Technology Symposium in May that CoWoS advanced packaging capacity will achieve a CAGR of more than 80% from 2022 to 2027, according to Reuters.

TSMC Pushes Forward with CoPoS Roadmap

Meanwhile, as reticle sizes continue to expand, TSMC is also advancing its next-generation advanced packaging platform, CoPoS (Chip-on-Panel-on-Substrate). Commercial Times notes that TSMC established an R&D production line for CoPoS at its subsidiary VisEra in 2025. Material and equipment qualification is expected to be completed as early as June 2026, with pilot production targeted for mid-2027.

According to TrendForce on Substack, NVIDIA’s Feynman platform is expected to be the first customer to adopt the technology. The platform is projected to enter full-scale mass production between 2028 and 2029, with major deployment planned at the company’s Chiayi facilities and its Arizona fabs in the U.S.

Read more

• [News] TSMC Sees AI Wafer Demand Rising 11x From 2022–2026, Targets CoWoS With 24 HBM Stacks in 2029
• [News] TSMC Says CoWoS Offers Industry’s Largest Packaging Amid Intel EMIB Rivalry; CoPoS Advances

(Photo credit: TSMC)