[News] TSMC Reportedly Expands Outsourcing of Key CoWoS Front-End Step to OSATs Amid Rising NVIDIA, ASIC Demand - TrendForce

TrendForce reports that TSMC is expanding outsourcing of key CoWoS front-end processes to OSATs amid surging demand from NVIDIA and ASIC markets. CoWoS technology is crucial for advanced packaging, pa... Read original →

TSMC's move to outsource key CoWoS front-end processes to OSATs reflects a strategic response to surging demand from NVIDIA and ASIC markets. This shift undermines TSMC’s vertical integration in advanced packaging but enhances overall capacity flexibility. Technologically, it accelerates specialization among OSATs and pushes original equipment manufacturers to focus on core fabrication. From a geopolitical perspective, the strategy helps TSMC navigate supply chain risks amid U.S.-China tech decoupling. Competitors like Samsung and UMC may follow suit, intensifying global packaging competition. In the medium term, this trend will redefine semiconductor manufacturing allocation, promoting a more modular and globally distributed industrial ecosystem.