NVIDIA's 2024 AI Chip Boosts CoWoS Demand

The tech industry is abuzz with expectations of NVIDIA, a major AI chip manufacturer, unveiling its next-generation graphics chip architecture in the coming year. This announcement is set to expedite the adoption of Chip-on-Wafer-on-Substrate (CoWoS) packaging solutions. Key players in the semiconductor arena, hailing from various countries including Taiwan, South Korea, the United States, Japan, and China, are strategically positioning themselves in the realm of 2.5D advanced packaging.

The surge in AI chip applications has led to a heightened demand for sophisticated packaging solutions, thereby enhancing the overall performance of AI chips. CoWoS technology is at the forefront of this transformation, playing a pivotal role. However, it's important to note that the production capacity for CoWoS packaging is currently constrained, which has implications for shipment schedules, even for industry giants like NVIDIA.

Industry experts, such as those at TF International Securities, anticipate a notable improvement in CoWoS supply as we progress into the fourth quarter. This improvement is expected to significantly enhance production visibility and bolster the prospects for the foreseeable future. Foreign institutional investors also predict that the expansion of CoWoS capacity will lead to increased shipments of NVIDIA's AI chips, thereby driving further growth in the demand for CoWoS capacity.

According to foreign assessments, NVIDIA's H100 graphics chip (GPU) module supply is poised to reach 800,000 to 900,000 units in the fourth quarter, marking a substantial increase from the approximately 500,000 units in the third quarter. Projections also indicate an estimated supply of one million units in the first quarter of the upcoming year. These optimistic figures are primarily attributed to the continuous enhancements in CoWoS capacity.

In terms of CoWoS capacity allocation, industry analysts estimate that NVIDIA could secure 5,000 to 6,000 CoWoS wafers from TSMC (Taiwan Semiconductor Manufacturing Company) and an additional 2,000 to 3,000 units from specialized outsourced semiconductor assembly and test (OSAT) facilities.

Market expectations are rife with speculation about NVIDIA's forthcoming launch of a new generation of B100 graphics chip architecture. According to assessments by both foreign and domestic investment advisors, the B100 architecture is likely to incorporate TSMC's cutting-edge 4-nanometer process and feature two GPU chips along with eight high-bandwidth memory (HBM) components. These developments are anticipated to further drive the demand for CoWoS advanced packaging solutions, ushering in a new era of AI chip technology.