TSMC CoWoS Capacity to Reach 70,000 Wafers, NVIDIA Leads Demand

TSMC is significantly ramping up its advanced packaging capabilities, with a major emphasis on expanding its CoWoS (Chip-on-Wafer-on-Substrate) process. Following the acquisition of old factories from Innolux and the ongoing capacity expansion at its Taichung facility, TSMC is set to reach a monthly CoWoS production capacity of 75,000 wafers by 2025.

Industry research firm Semiwiki reports that TSMC's expansion in Taiwan is largely driven by increasing demand from NVIDIA, with projected monthly CoWoS capacity estimates ranging from 65,000 to 75,000 wafers in 2025, and further growth expected in 2026, with monthly capacity reaching between 90,000 and 110,000 wafers.

In terms of demand distribution, Semiwiki forecasts that NVIDIA will account for 63% of total CoWoS demand in 2025, underscoring its leadership in adopting CoWoS technology. Broadcom follows with a 13% share, while AMD and Marvell each hold an 8% stake, reflecting strong interest from these companies in the advanced packaging technology.

Other contributors to the CoWoS demand include AWS with its Al chip (3%), Intel (2%), Xilinx (1%), and various others (3%).

Moreover, TrendForce, another industry research organization, highlighted in its November 2024 report that NVIDIA's upcoming Blackwell platform chips, expected to scale up in the first half of 2025, will drive demand for TSMC's CoWoS-L process, surpassing CoWoS-S and representing over 60% of total CoWoS demand. This shift is expected to boost TSMC's monthly CoWoS production capacity to 75,000 to 80,000 wafers by the end of 2025.

The report also notes that major cloud service providers (CSPs), including Amazon AWS, are increasingly investing in ASIC AI chip development, which will further elevate CoWoS demand in 2025.