[News] TSMC’s Advanced Packaging Sees Surge with Rush Orders from NVIDIA, AMD, Amazon

According to a report by Taiwan’s Economic Daily, TSMC’s CoWoS advanced packaging capacity is running at full throttle. As they actively expand their production capabilities, there are reports of major customers like NVIDIA increasing their orders for AI chips. Additionally, industry giants like AMD and Amazon have rushed in with urgent orders.

In response to this urgent situation, TSMC is actively seeking equipment suppliers to expand its CoWoS machine procurement. Beyond TSMC’s existing production expansion goals, the company is further increasing its orders for equipment by an additional 30%, highlighting the ongoing fervor in the AI market.

It is reported that TSMC has sought assistance from equipment manufacturers such as Scientech, Allring, Grand Process Technology, E&R Engineering, and GP Group for this endeavor. They plan to complete the delivery and installation of the equipment by the first half of the coming year. The related equipment manufacturers are experiencing a surge in activity.

Industry sources reveal that TSMC’s CoWoS advanced packaging monthly production capacity is currently around 12,000 units. With their previous expansion efforts, they aimed to gradually increase this to 15,000 to 20,000 units per month. Now, with the addition of more equipment, they are looking at the possibility of reaching capacities of over 25,000 units per month, potentially even approaching 30,000 units. This substantial increase in production capacity positions TSMC to handle a significantly larger volume of AI-related orders.

Equipment providers have pointed out that NVIDIA is currently TSMC’s largest customer for CoWoS advanced packaging, accounting for 60% of the production capacity. Recently, in response to robust demand in AI computing, NVIDIA has increased its orders. Additionally, urgent orders from other customers such as AMD, Amazon, and Broadcom have started to pour in.

(Photo credit: TSMC)