TSMC nears AI packaging demand after years of doubling capacity:'CoWoS guy' Jun He - digitimes

Taiwan Semiconductor Manufacturing Company (TSMC) has been doubling its CoWoS and SoIC capacity annually over recent years, and is now operating CoWoS at yields exceeding 98%, sometimes reaching 99%, ... Read original →

TSMC’s aggressive expansion in AI chip packaging signals a matured position in advanced packaging technologies, with CoWoS and SoIC yields exceeding 98%. This capability directly supports NVIDIA and other AI chipmakers, accelerating the industry’s shift toward high-bandwidth, low-latency chip architectures. However, geopolitical tensions, especially over EUV equipment restrictions, pose a significant risk to TSMC’s supply chain stability. Should U.S. export controls tighten further, TSMC may be forced to restructure its global production strategy, potentially reshaping the semiconductor ecosystem. Competitors like Intel and Samsung are likely to accelerate their own advanced packaging investments to counter TSMC’s dominance. In the next 12 to 24 months, sustained demand for AI packaging will intensify, and TSMC’s ability to maintain production scaling will be critical. If it fails to keep pace, it risks losing market share. TSMC’s current technological lead, if sustained, will solidify its role as the central node in global AI compute supply chains.