TSMC is significantly increasing its production targets for CoWoS advanced packaging technology through 2026-2027. The company is actively converting existing production lines to focus on CoWoS capacity to meet surging market demand.

This strategic shift is driven by the explosive need for high-performance AI chips, which rely on CoWoS 2.5D heterogeneous integration to connect processors like GPUs with high-bandwidth memory (HBM). Major clients, including NVIDIA, have robust and growing orders, while demand from AI ASIC designs is also accelerating. Reports indicate MediaTek's entry into the AI ASIC design service market is contributing to additional CoWoS orders.

TSMC is executing this expansion across multiple sites. Facilities in the Southern Taiwan Science Park will be adapted, and planned SoIC capacity in the Chiayi AP7 site will be repurposed for CoWoS production. The company is also reportedly considering a new advanced packaging site in Yunlin and may double its planned facilities in Arizona from two to four.

The overall goal is to elevate CoWoS monthly capacity to 127,000 wafers by the end of 2026, a substantial increase over previous plans, ensuring it can fulfill orders from leading tech giants.

ICgoodFind : TSMC's aggressive CoWoS capacity ramp directly addresses the critical bottleneck in AI chip production, strengthening its leadership in advanced packaging and supporting the global rollout of next-generation AI hardware.