TSMC raises monthly CoWoS production capacity target for next year
Since entering 2023, the rise of artificial intelligence (AI) tools led by ChatGPT has significantly increased the demand for data center GPUs like NVIDIA’s A100 and H100. This surge in demand has strained the advanced packaging capacity of Taiwan Semiconductor Manufacturing Company (TSMC), the company responsible for manufacturing and packaging these GPUs, compelling them to urgently expand their 2.5D packaging capabilities. Recent reports suggest that after months of effort, TSMC has now increased its CoWoS (Chip-on-Wafer-on-Substrate) packaging capacity to 15,000 wafers per month, with NVIDIA occupying 40% of this capacity and AMD taking up 8%.
According to media sources, TSMC plans to further boost its monthly CoWoS capacity targets next year by 20%, aiming to reach 35,000 wafers per month to meet the skyrocketing market demand. For some time, due to insufficient CoWoS capacity at TSMC, NVIDIA’s data center GPUs faced long-term supply shortages, and other major chip design companies also sought more CoWoS capacity to manufacture more advanced chips.
TSMC’s Chairman, Mark Liu, recently stated to the media that they are striving to meet customer demands for CoWoS capacity, but can only support about 80% of the potential orders. With the arrival of NVIDIA’s H200, the demand for CoWoS capacity is only expected to rise. Industry insiders suggest that NVIDIA’s needs might consume up to 60% of TSMC’s CoWoS capacity.
However, increasing advanced packaging capacity is not entirely within TSMC’s control, as it requires the cooperation of the supply chain, including a corresponding increase in material production. TSMC’s President and Co-CEO, C.C. Wei, has declared that by the end of 2024, they aim to double the CoWoS capacity, a key factor currently limiting the production of advanced chips.
