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

CTOnews.com Sept. 26, according to Taiwan's "United Daily News", as TSMC's supply chain expands CoWoS advanced packaging capacity, the rise in these intermediate film prices will eventually push up the cost of AI chips produced by the company.

TSMC is investing billions in upgrading its packaging capacity because of strong demand for AI products. In July, the company announced a $2.89 billion investment in a new chip packaging plant, which aims to increase packaging capacity to 30,000 pieces a month by the end of 2024.

CTOnews.com Note: CoWoS is a technology that stacks bare chips on top of each other. This technology can improve the performance of these chips by placing them on a silicon intermediate film.

It is reported that TSMC is purchasing CoWoS machines from equipment factories such as Xinyun, Wanrun, Hongsu, Titanium Sheng, and Qunli. These companies are expected to be the biggest beneficiaries of TSMC's growing demand for CoWoS products, and are expected to complete the delivery and installation in the first half of next year.

According to people in the industry, TSMC currently has a monthly production capacity of about 12000 pieces of CoWoS advanced packaging. after the previous production expansion, the original monthly production capacity will be gradually expanded to 15000 to 20,000 pieces, and after that, the additional equipment will be stationed in the plant, which will make TSMC's monthly production capacity reach more than 25000 pieces, or even move closer to 30,000 pieces, thus increasing TSMC's ability to undertake orders related to AI, due to the upgrading of related production capacity. The price of TSMC's AI chips will also rise.

In addition, Taiwan media pointed out that Nvidia is currently the largest customer of TSMC's CoWoS advanced packaging, with orders accounting for 60% of production capacity. Recently, in response to the strong demand for AI computing, Nvidia has expanded to issue orders, while urgent orders for customers such as Amazon and Broadcom have also begun to emerge.

Considering the urgent customer demand for CoWoS advanced packaging capacity, TSMC recently pursued 30% of the equipment factory, and asked to complete the delivery and installation of the machine 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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