Institution: Global CoWoS production capacity demand will increase by 113% next year, and TSMC's monthly production capacity will increase to 65000 wafers
According to DIGITIMES Research, driven by strong demand for cloud based AI accelerators, the global demand for CoWoS and similar packaging capacity is expected to increase by 113% by 2025.
Major suppliers TSMC, ASE Technology Holdings (including Silicon Precision Industries, SPIL), and Amkor are expanding their production capacity. According to DIGITIMES Research's latest report on global CoWoS packaging technology and production capacity, TSMC's monthly production capacity is expected to increase to over 65000 12 inch wafer equivalents by the end of the fourth quarter of 2025, while Amkor and ASE's shared production capacity will increase to 17000 wafers.
Nvidia is TSMC's largest customer for CoWoS packaging technology. The organization estimates that, thanks to Nvidia's Blackwell series GPU mass production, TSMC will transition from CoWoS Short (CoWoS-S) to CoWoS Long (CoWoS-L) process starting from the fourth quarter of 2025, making CoWoS-L the main process for TSMC's CoWoS technology.
Nvidia's demand for CoWoS-L technology may significantly increase from 32000 wafers in 2024 to 380000 wafers in 2025, a year-on-year increase of 1018%. Therefore, DIGITIMES Research estimates that in the fourth quarter of 2025, CoWoS-L will account for 54.6% of TSMC's total CoWoS production capacity, CoWoS-S will be 38.5%, and CoWoS-R will be 6.9%.
It is reported that Nvidia has significantly increased its high-end GPU shipments and placed a large order for TSMC CoWoS production capacity to meet the demand for GB200 system. Meanwhile, companies such as Broadcom and Marvel, which provide ASIC (Application Specific Integrated Circuit) design services for Google and Amazon, are continuously increasing their minimum order quantities for wafers.
Citigroup Securities previously released a report stating that advanced process and packaging technology are key to the success of artificial intelligence (AI) chips. TSMC's CoWoS production capacity at the end of this year is 30000 to 40000 pieces per month. After purchasing INNOLUX Nanya Plant 4, the CoWoS production capacity will be increased from 60000 to 70000 pieces per month to 90000 to 100000 pieces per month by the end of 2025. The estimated annual production capacity is 700000 pieces or more, which is twice the estimated production capacity of 350000 pieces this year.
Nvidia is TSMC's largest customer for CoWoS packaging technology. The organization estimates that, thanks to Nvidia's Blackwell series GPU mass production, TSMC will transition from CoWoS Short (CoWoS-S) to CoWoS Long (CoWoS-L) process starting from the fourth quarter of 2025, making CoWoS-L the main process for TSMC's CoWoS technology.
Nvidia's demand for CoWoS-L technology may significantly increase from 32000 wafers in 2024 to 380000 wafers in 2025, a year-on-year increase of 1018%. Therefore, DIGITIMES Research estimates that in the fourth quarter of 2025, CoWoS-L will account for 54.6% of TSMC's total CoWoS production capacity, CoWoS-S will be 38.5%, and CoWoS-R will be 6.9%.
It is reported that Nvidia has significantly increased its high-end GPU shipments and placed a large order for TSMC CoWoS production capacity to meet the demand for GB200 system. Meanwhile, companies such as Broadcom and Marvel, which provide ASIC (Application Specific Integrated Circuit) design services for Google and Amazon, are continuously increasing their minimum order quantities for wafers.
Citigroup Securities previously released a report stating that advanced process and packaging technology are key to the success of artificial intelligence (AI) chips. TSMC's CoWoS production capacity at the end of this year is 30000 to 40000 pieces per month. After purchasing INNOLUX Nanya Plant 4, the CoWoS production capacity will be increased from 60000 to 70000 pieces per month to 90000 to 100000 pieces per month by the end of 2025. The estimated annual production capacity is 700000 pieces or more, which is twice the estimated production capacity of 350000 pieces this year.