[News] Facing CoWoS Shortage, TSMC’s Taichung Plant Joins Capacity Support

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According to a report by Taiwan’s Commercial Times, TSMC is facing a tight supply of advanced packaging capacity, with its Taichung factory ramping up equipment support at a rapid pace. Industry insiders have disclosed that TSMC’s annual production capacity for the backend CoWoS (Chip-on-Wafer-on-Substrate) advanced packaging is only 150,000 to 300,000 units, falling short of customer demand by over 20%.

To address this shortfall, TSMC officially inaugurated its advanced packaging and testing Plant 6 in Zhunan in June. TSMC’s management has also committed to steadily increasing CoWoS production capacity each quarter, and third-party testing facilities are being actively engaged to bridge the gap.

It is worth noting that TSMC’s Longtan factory has traditionally been a key hub for CoWoS and InFO (Integrated Fan-Out) packaging, with a primary focus on InFO production at approximately 100,000 units per month and a smaller portion allocated to CoWoS. Although some of the InFO capacity has been relocated to the Southern Taiwan Science Park, Longtan’s physical space constraints continue to make Zhunan the primary location for CoWoS expansion. TSMC’s Taichung AP5 factory, on the other hand, is prioritizing WoS (Wafer-on-Substrate) expansion, with CoW (Chip-on-Wafer) expansion slated to commence next year. Many equipment suppliers have reportedly received urgent orders related to these expansion efforts.

Analysts estimate that this year’s overall CoWoS production will reach 110,000 units, doubling to 250,000 units next year. However, analysts caution that while TSMC currently dominates the CoWoS production landscape, other players are gradually entering the field. Therefore, it is crucial to monitor whether an oversupply situation may emerge in the mid-term next year.

(Photo credit: TSMC)