TSMC finally catching up to AI packaging demand after years of doubling capacity: 'CoWoS guy' Jun He - digitimes

Taiwan Semiconductor Manufacturing Company (TSMC) has finally caught up with the surging demand for AI packaging after years of doubling its CoWoS and SoIC capacity annually. The company is now operat... Read original →

TSMC’s breakthrough in AI chip packaging marks a pivotal shift from capacity expansion to technological maturity. Previously, doubling CoWoS and SoIC output was merely quantitative; now, achieving over 98% yield across high-volume AI products signals global leadership in advanced packaging. This advancement directly supports NVIDIA and other AI leaders in delivering high-performance chips, while also enhancing integration efficiency at 3nm and below. Upstream reliance on EUV equipment and materials remains a key vulnerability, while downstream demand for differentiated packaging technologies is reshaping global supply chains. As AI workloads intensify, TSMC’s ability to maintain yield and delivery will likely solidify its dominance in data center infrastructure. In the next 12 to 24 months, AI packaging will become a core growth engine, with TSMC poised to control the supply chain narrative for global AI compute infrastructure.