CoWoS Capacity Gap Narrows; TSMC Warns ABF Substrates Will Be the Next Bottleneck in Advanced Packaging - finance.biggo.com

At the OCP APAC Summit, TSMC's Vice President of Advanced Packaging Technology and Services, He Jun, revealed that with CoWoS capacity doubling for three consecutive years, supply is now 'very close' ... Read original →

The alleviation of CoWoS capacity constraints has shifted bottlenecks to ABF substrates, revealing the structural fragility of the advanced packaging supply chain. As demand for AI and high-performance computing surges, packaging technology becomes critical for performance gains, while ABF substrates—due to their complex manufacturing and concentrated supply—pose a new constraint. This shift underscores the semiconductor industry’s transition from single-point to multi-constraint bottlenecks, especially amid U.S.-China tech decoupling. TSMC must accelerate capacity and material coordination to avoid customer attrition, while rivals like Samsung and UMC may ramp up ABF production to gain competitive edge. Over the next 12–24 months, without breakthroughs in key materials, AI chip scaling could stall, with packaging emerging as the decisive factor in industry momentum.