[News] TSMC Reportedly Building Two More CoWoS Facilities, Debunking Order Cut Rumors

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According to a report from Economic Daily News, TSMC plans to build two new CoWoS facilities at the Phase III site of Southern Taiwan Science Park (STSP), with an estimated investment exceeding NTD 200 billion.

Construction at the STSP Phase III site is expected to begin as early as March 2025, and the two new facilities are projected to be completed by April 2026, with equipment installation likely commencing shortly thereafter, as the report notes.

As indicated by the report, the Southern Taiwan Science Park Administration has confirmed TSMC’s submission of a land lease application but declined to disclose details about the company’s specific development plans. Meanwhile, TSMC Chairman C.C. Wei reaffirmed the company’s commitment to expanding CoWoS production capacity during last week’s earnings call.

Citing industry sources, the report suggests that the new CoWoS facilities at the STSP will occupy a land area of 25 hectares, surpassing the 20-hectare of the ChiaYi facility.

NVIDIA’s Order of CoWoS-L Capacity

Recently, speculation about NVIDIA cutting its CoWoS orders from TSMC has been circulating, as the report points out. However, NVIDIA CEO Jensen Huang dismissed these rumors during his recent visit to Taiwan. Huang stated there has been no reduction in CoWoS demand and revealed an increasing need for CoWoS production, particularly for CoWoS-L capacity.

According to TrendForce, looking ahead to 2025, NVIDIA plans to strategically promote the B300 and GB300 lines—which utilize CoWoS-L technology—thereby boosting the demand for advanced packaging solutions.

TrendForce estimates that, driven primarily by demand for NVIDIA’s Blackwell, the share of CoWoS-L is expected to increase from around 15% in 2024 to 50-60% in 2025, becoming the dominant segment.

TSMC’s CoWoS Expansion Plan Update

TSMC plans to expand eight CoWoS facilities in the short term, as the report notes. This includes two at ChiaYi Science Park Phase 1 and two facilities acquired from Innolux (AP8). Notably, although ChiaYi Science Park Phase 2 was initially slated to host two additional facilities, the land there will not be available until January 2026 at the earliest, as indicated by the report. As a result, TSMC has reportedly prioritizes constructing two CoWoS facilities at the STSP Phase III site. The locations for the remaining two planned facilities are still under evaluation.

Read more

• [News] TSMC Faces Order Cut Fears as AMD, Broadcom, and NVIDIA Reportedly Slash CoWoS-S Demand
• [News] TSMC’s Advanced Process and CoWoS Expansion: Progress Unveiled
• NVIDIA Renames Blackwell Ultra to B300 Series; CoWoS-L Expected to See Growth by 2025, Says TrendForce

(Photo credit: TSMC)