The wave of artificial intelligence is expected to continue until 2024, with the supply chain expanding to new levels. TSMC is reportedly going all out to meet the high demands for CoWoS supplies, as the Taiwanese giant plans to double its output this year.
CoWoS packaging [CoWoS (Chip-on-Wafer-on-Substrate) packaging is a sophisticated semiconductor packaging technology developed by TSMC. It involves integrating different chips onto a single wafer and then mounting this wafer onto a larger substrate. This method allows for higher interconnect density, reduced footprint, and potentially improved electrical performance compared to traditional packaging techniques. CoWoS is particularly useful for applications requiring high bandwidth and low latency, such as high-performance computing and advanced graphics processors.] is considered a crucial component for creating the hardware needed for artificial intelligence computation, especially for AI accelerators like Nvidia’s H100s. With the advent of the generative AI craze, GPU manufacturers are eager to “roll out” AI-focused products at maximum capacity, which has ultimately also spurred the demand for CoWoS packaging.
Due to the huge growth in demand, packaging suppliers like TSMC are unable to cope, and even though the AI craze has passed for nearly a year, they are still facing various issues. Industry leaders such as AMD and NVIDIA are said to have played a significant role in the growth of CoWoS demand, and the situation is not expected to stop there.
According to a report by DigiTimes, TSMC expresses confidence in the future supply of CoWoS and states that the company has successfully attracted immense interest in the field of AI, with companies “collaborating with TSMC“. The report mentions that by the end of 2024, TSMC’s monthly output of CoWoS could reach 32,000 units, and by the end of next year, this figure could potentially reach 44,000 units, indicating that the company is continuously upgrading its existing facilities to ensure smooth packaging supply and avoid disruptions like in the past.
It’s important to know that TSMC has indeed “reserved” a considerable portion of CoWoS supply for Nvidia, as Nvidia is not only a significant customer of Team Green but also because the Taiwanese giant knows who to stand with in the future. Despite the strict regulations imposed by the United States, Nvidia’s dominant position in the AI market seems to be unceasing for the time being, with companies like Meta rapidly expanding their AI GPU portfolios. There are reports that the company has expanded Nvidia’s H100 to over 600,000 units. This suggests that despite setbacks and obstacles, Nvidia and its AI arsenal will still shine in the future market.
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