[News] TSMC Reportedly Sees CoWoS Order Surge, with NVIDIA Securing 70% of 2025 CoWoS-L Capacity

Previously, speculation circulated that NVIDIA might reduce its CoWoS orders from TSMC. However, according to Economic Daily News, TSMC’s advanced packaging orders have experienced an upsurge.

Sources indicate that NVIDIA’s latest Blackwell architecture GPU chips are in strong demand, and the company has secured over 70% of TSMC’s CoWoS-L advanced packaging capacity for 2025, with shipment volumes increasing by more than 20% each quarter. It is estimated that the annual shipment volume will break through 2 million units, as indicated by the report.

Furthermore, the report mentions that following the U.S. announcement of the Stargate project—driving a new wave of AI server demand—NVIDIA may place additional orders with TSMC.

During the January earnings call, TSMC Chairman C.C. Wei stated that the company is continuously expanding its advanced packaging capacity to meet customer demand. According to the report, TSMC estimates that advanced packaging revenue accounted for approximately 8% in 2024 and is expected to exceed 10% in 2025, with a target gross margin surpassing the company’s average.

Meanwhile, the report reveals that following the commencement of mass production for the Blackwell architecture GPUs, NVIDIA will gradually phase out the previous-generation Hopper architecture H100/H200, with the generational transition anticipated to occur by mid-2025 at the latest.

TSMC’s CoWoS Expansion Plan Update

As noted by another report from Economic Daily News, TSMC plans to expand eight CoWoS facilities in the short term. 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 Reportedly Building Two More CoWoS Facilities, Debunking Order Cut Rumors
• NVIDIA Renames Blackwell Ultra to B300 Series; CoWoS-L Expected to See Growth by 2025, Says TrendForce
• [News] TSMC Faces Order Cut Fears as AMD, Broadcom, and NVIDIA Reportedly Slash CoWoS-S Demand

(Photo credit: TSMC)