TSMC Aims for 200,000 CoWoS Units Monthly by 2027
Taiwan Semiconductor Manufacturing Company (TSMC) is aggressively expanding its advanced packaging capacity to meet persistent demand, according to industry sources cited by Taiwan's eTimes. Construction at TSMC's new facilities is reportedly proceeding around the clock with 24-hour shifts. Equipment suppliers indicate that TSMC's CoWoS (Chip-on-Wafer-on-Substrate) monthly production is expected to reach approximately 30,000 units in 2024. This figure is projected to grow to 70,000 units in 2025 and exceed the original target of 110,000 units by the end of 2026, reaching over 130,000 units. The company's target for monthly CoWoS capacity by 2027 is set at a minimum of 200,000 units, though market optimism suggests it could reach between 240,000 and 260,000 units by year-end. Despite these expansion plans, TSMC has not yet finalized equipment supplier orders, causing anxiety within the supply chain about potential price competition and delivery timelines. Given that equipment lead times range from 7 to 9 months, suppliers are concerned about their ability to meet TSMC's production schedule.
The significant expansion of TSMC's CoWoS advanced packaging capacity reflects the escalating demand driven by AI and high-performance computing. This strategic investment, while crucial for maintaining technological leadership, presents a complex supply chain challenge. The race to secure manufacturing capacity and equipment highlights the critical bottleneck in advanced packaging, a key enabler for next-generation semiconductors. The uncertainty surrounding order allocation and the long lead times for specialized equipment create potential risks for both TSMC and its suppliers, potentially impacting pricing dynamics and timely delivery. Navigating these dynamics will be essential for TSMC to meet future market demands and for the broader industry to capitalize on the AI revolution.
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