TSMC is set to significantly upscale its CoWoS packaging output, as the Taiwan giant plans to spend almost US $16 billion on building new facilities.
TSMC Looks To Rapidly Expand Its CoWoS Output Through Massive Investments, Ensuring a Seamless Supply Chain For AI Customers
CoWoS packaging has seen a tremendous rise in demand in the past year, as resources play a vital role in manufacturing AI accelerators, which are the “holy grail” of the AI industry. As we transition into the next-gen era, AI GPU suppliers wouldn’t certainly want to experience a supply chain bottleneck, which was previously caused by a high-demand supply situation, and this is why firms like TSMC are working rapidly on upscaling current facilities to ensure a seamless delivery process for the upcoming AI products.
Taiwan Economic Daily reports that TSMC is looking to invest 500 billion yuan or $16 billion to expand its advanced packaging facilities, with plans for building six new facilities, two of which are expected to become operational this year. The Taiwan giant plans to develop the facilities at Chiayi, South Taiwan, a technological hub of the nation with all the necessary equipment to make these proposed factories operational. It was reported that TSMC expects the monthly output of CoWoS to reach 44,000 units by the end of 2024, and with the latest development, we expect this number to surge in the upcoming months.
This also shows that future markets are expected to see huge AI accelerator demand. As we get closer to the debut of next-gen AI accelerators like the Blackwell B100 GPUs from NVIDIA, consumer interest is inevitably going to be explosive. Analysts predict that the B100 could outperform the prior NVIDIA Hopper H100 in terms of market sales, which will ultimately require a more robust supply chain.
