TSMC is reported to have bumped up orders for advanced CoWoS packaging equipment amid the influx of huge demand from tech companies like NVIDIA and AMD.
TSMC Wouldn't Be Left Out By All Means, Taiwan Giant Plans on Satisfying All Customers Including NVIDIA & AMD With Expanded CoWoS Capabilities
Taiwan Economic Daily reports that competitors within the AI industry are "rushing" towards TSMC in an attempt to fulfill the ongoing genAI hype, which has resulted in a huge demand for essential components such as AI GPUs from NVIDIA, Intel, and AMD. The Taiwan giant is currently unable to cope with the demand, especially for CoWoS packaging, since the company's facilities haven't really reached the "required" production yet.
Nvidia, AMD, Amazon rush orders have TSMC scrambling to buy CoWoS chip packaging machinery 30% over existing orders, highlighting the ongoing AI boom, media report. TSMC had planned to expand CoWoS capacity to 15-20,000 wafers per month in the 1st half-2024, but the new machinery…
— Dan Nystedt (@dnystedt) September 25, 2023
It is said that TSMC has now placed more orders for advanced packaging equipment, which is estimated at a 30% bump. However, the actual installation is expected somewhere near the end of this year; hence, for now, NVIDIA & others might have to bear the "bottlenecks" within the supply chain. The source reports that TSMC could potentially reach up to 30,000 wafer output a month, doubling down on what it is currently producing. Currently, the production stands at around 12K wafers but 15-20K output is expected by the first half of 2024.
It is evident by now that with the rapid increase in AI developments, fab companies like TSMC have met with unexpected demand, due to which it is unable to cope with the existing orders. However, industry indicators do suggest that TSMC is moving towards upgrading current facilities since, after all, it is the most reliable chip manufacturer in the industry. Speaking of reliability, we reported a while back that NVIDIA plans on seeking other partners as well, with the Korean giant Samsung in a dominant position.
NVIDIA has predicted huge sales of its AI inventory in the upcoming years, with AI GPUs such as the H100s taking the lead. With Team Green's forecast to ship millions of H100s by 2024, it is obvious that it will demand "higher production" from its sourcing partners, which is why companies like TSMC and SK Hynix are striving towards rapidly developing their in-house production.
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