TSMC To Significantly Upscale “CoWoS” Production Within The Upcoming Quarters, Reaching Up To 130,000 Monthly Output By 2026

Taiwan Semiconductor Manufacturing Company (TSMC) is making significant strides to enhance its CoWoS (Chip on Wafer on Substrate) production capabilities in response to soaring demand, particularly from the AI market. This demand has created a bottleneck in the supply chain, prompting TSMC to accelerate its production efforts.

Massive Demand: TSMC's CoWoS technology is essential for developing AI accelerators, leading to unprecedented demand from major players like NVIDIA, Apple, MediaTek, Google, and Amazon. This surge has resulted in a supply chain bottleneck.

Current Production Capacity: As of now, TSMC's CoWoS production capacity stands at 36,000 units per month. The company plans to increase this to 90,000 units by the end of 2025.

Future Goals: TSMC aims to ramp up production to 130,000 units per month by 2026, representing a nearly fourfold increase in just one year. This ambitious target reflects the company's commitment to meeting the growing needs of the AI sector.

Market Position: TSMC's unique technology is unmatched by competitors, making it the go-to supplier for companies looking to secure their AI hardware production. This dominance is further supported by TSMC's advancements in 5nm and 3nm processes.

Price Adjustments: To manage the overwhelming demand, TSMC is also expected to implement price increases for its CoWoS services.

As TSMC continues to expand its production capabilities, it solidifies its position as a leader in the semiconductor industry, particularly in the rapidly evolving AI landscape. The company's proactive approach to scaling production is crucial for meeting the needs of its clients and maintaining its competitive edge.