Shulou(Shulou.com)11/24 Report--

Thank you CTOnews.com netizen Mr. Aviation for the clue delivery! CTOnews.com September 25 news, with the hot demand for NVIDIA AI chips, the foundry TSMC also increased production capacity all the way.

According to Taiwan media "Economic Daily" report, TSMC CoWoS (CTOnews.com note: Chip-on-Wafer-on-Substrate) advanced packaging capacity is full, actively expand production, spread big customer NVIDIA to expand AI chip orders, plus AMD, Amazon and other big factories urgent orders, TSMC urgently look for equipment suppliers to buy CoWoS equipment, in addition to the existing production increase target, equipment orders add another 30%, highlighting the current AI market continues to be hot.

Reported that, TSMC this time to seek Xinyun, Wanrun, Hongsu, Tisheng, Qunyi and other equipment factory assistance, Request to expand reinforcement CoWoS equipment, It is expected to complete the delivery and installation in the first half of next year, Relevant equipment factory busy, Not only previously has won TSMC originally ordered expansion target machine orders, Now get another 30%, The second half of the revenue will significantly increase, More drive related equipment factory order visibility until the first half of next year.

Industry sources revealed that TSMC's current monthly production capacity of CoWoS advanced packaging is about 12,000 pieces. After the previous expansion, the original monthly production capacity was gradually expanded to 15,000 to 20,000 pieces. Now additional equipment will be stationed, which will make the monthly production capacity reach more than 25,000 pieces, or even close to 30,000 pieces, so that TSMC's AI-related order energy will increase greatly.

The equipment factories that were exposed did not comment on the order dynamics. According to people familiar with the matter, demand for AI chips will continue to grow strongly as AI computing applications expand significantly, including assisting machines in autonomous learning, training large language models (LLM) and AI inference, and landing in areas such as autonomous vehicles and smart factories.

The report also said that NVIDIA, AMD and other large customers have increased the number of wafer foundries in the third quarter, effectively boosting the utilization rate of TSMC's 7nm and 5nm advanced process capacity, but CoWoS advanced packaging capacity exceeds demand, which has become the biggest bottleneck in the production chain.

Wei Zhejia, president of TSMC, mentioned in the French meeting a few days ago that TSMC has actively expanded CoWoS advanced packaging capacity, hoping to relieve the tight pressure on production capacity after the second half of 2024. It is understood that TSMC has squeezed out plant space in Zhuke, Zhongke, Nanke, Longtan and other places to increase CoWoS production capacity, and Zhunan sealing and testing plant will also simultaneously build advanced packaging production lines such as CoWoS and TSMC SoIC.

Industry sources pointed out that TSMC began to launch CoWoS advanced packaging production expansion plan in the second quarter, and launched the first batch of purchase orders for equipment cooperation plants in May. This batch of equipment is expected to be fully in place and installed by the end of the first quarter of next year, when the monthly production capacity of CoWoS advanced packaging can be increased to 15,000 to 20,000 pieces. Even though TSMC has vigorously expanded CoWoS production capacity, the explosion of client demand has caused TSMC to add orders to the equipment cooperation plant.

Equipment practitioners pointed out that Nvidia is currently the largest customer of TSMC CoWoS advanced packaging, with orders accounting for 60% of production capacity. Recently, due to strong demand for AI computing, Nvidia has expanded orders, and urgent orders from AMD, Amazon, Broadcom and other customers have begun to emerge. Considering that customers are eager for CoWoS advanced packaging capacity, TSMC has once again pursued 30% of the equipment factory, and requested to complete the delivery and installation by the end of the second quarter of next year, and start mass production in the second half of next year.

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