Rohan Paul

TSMC is reportedly preparing another CoWoS price rise of up to 20% as AI packaging demand outruns supply. CoWoS (Chip on Wafer on Substrate), joins an AI processor to its high-bandwidth memory on one densely wired base. Demand has spread from GPUs to server CPUs and custom ASICs, so foundries and packagers expect 10% to 20% increases. Supply can’t jump quickly, since equipment lead times stretched from 3-6 months to 6-8 months, and tool buyers no longer haggle. Larger packages will deepen the squeeze, because they cut each tool’s hourly output, so even flat chip volumes need more machines. They keep growing: TSMC chairman C.C. Wei says packages 5 times the largest printable chip are in mass production at excellent yields, with 9x and 14x planned.