TSMC CoWoS Packaging Reportedly to Raise Prices Again, with Increases of Up to 20%
TSMC is reportedly preparing to raise CoWoS packaging prices again, with increases of up to 20%, because AI packaging demand exceeds supply. Demand has expanded from GPUs to server CPUs and custom ASICs, and foundries and packaging houses are expected to raise prices by 10% to 20%. Equipment lead times have stretched from 3-6 months to 6-8 months, and larger package sizes will also reduce the per-tool hourly output. TSMC Chairman C.C. Wei said that packaging with an area 5 times that of the largest printable chip has entered mass production with excellent yield, and 9x and 14x plans are in planning.
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From the size of the price increases and equipment lead times to packaging size plans, this traces the supply-demand chain behind the tight AI packaging capacity.
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TSMC is reportedly preparing another CoWoS price rise of up to 20% as AI packaging demand outruns supply.
CoWoS (Chip on Wafer on Substrate), joins an AI processor to its high-bandwidth memory on one densely wired base.
Demand has spread from GPUs to server CPUs and custom ASICs, so foundries and packagers expect 10% to 20% increases.
Supply can’t jump quickly, since equipment lead times stretched from 3-6 months to 6-8 months, and tool buyers no longer haggle.
Larger packages will deepen the squeeze, because they cut each tool’s hourly output, so even flat chip volumes need more machines.
They keep growing: TSMC chairman C.C. Wei says packages 5 times the largest printable chip are in mass production at excellent yields, with 9x and 14x planned.