It home September 25 news, with the hot demand for Nvidia AI chips, contract manufacturer TSMC also increases production capacity all the way.

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According to the Taiwan media "Economic Daily" reported that TSMC CoWoS (IT home note: Chip-on-Wafer-on-Substrate) advanced packaging capacity is full, actively expand production, it is reported that major customers Nvidia expanded AI chip orders, coupled with the emergence of AMD, Amazon and other major manufacturers urgent order, TSMC urgently looking for equipment suppliers to purchase CoWoS equipment, in addition to the existing production target, equipment orders increased by 30%, highlighting the current AI market continues to be hot.

According to the report, TSMC sought the assistance of equipment factories such as Xin Yun, Wanrun, Hongsu, Titanium Sheng, and Qunyi, and asked for the expansion of CoWoS equipment. It is expected that the delivery and installation of the machine will be completed in the first half of next year. The relevant equipment factory is busy. Not only has it won the original TSMC target machine order, but now it has won another 30% of the order, and its revenue will increase significantly in the second half of the year, driving the visibility of relevant equipment factories to the first half of next year.

The equipment factories that were exposed did not comment on the dynamic of the order. Demand for AI chips will continue to grow strongly as AI computing applications expand dramatically, including assisting in machine autonomous learning, training large language models (LLM) and AI inferences, and landing in areas such as self-driving cars and smart factories, according to people familiar with the matter.

The report also said that Nvidia, AMD and other major customers have increased the amount of wafer production in the third quarter, effectively pushing up TSMC 7nm and 5nm advanced process capacity utilization, but CoWoS advanced packaging capacity is in short supply, has become the biggest bottleneck in the production chain.

Wei Zhe-Jia, president of TSMC, said in France a few days ago that TSMC has actively expanded its CoWoS advanced packaging capacity, hoping to ease the capacity crunch after the second half of 2024. It is understood that TSMC has squeezed out plant space to increase CoWoS production capacity in bamboo, Zhongke, Nanke, Longtan and other places, and the Chunan closed test plant will also build advanced packaging production lines such as CoWoS and TSMC SoIC at the same time.

Wei Zhe-Jia, president of TSMC, said in France a few days ago that TSMC has actively expanded its CoWoS advanced packaging capacity, hoping to ease the capacity crunch after the second half of 2024. It is understood that TSMC has squeezed out plant space to increase CoWoS production capacity in bamboo, Zhongke, Nanke, Longtan and other places, and the Chunan closed test plant will also build advanced packaging production lines such as CoWoS and TSMC SoIC at the same time.

Industry sources pointed out that TSMC began to launch the CoWoS advanced packaging production expansion plan in the second quarter, and launched the first batch of orders for the equipment factory in May. The equipment is expected to be in place and installed at the end of the first quarter of next year, when the monthly production capacity of CoWoS advanced packaging can be increased to 15000 to 20,000 pieces. Even though TSMC has made great efforts to expand its CoWoS capacity, the outbreak of client demand has led TSMC to place additional orders with the equipment cooperation factory a few days ago.

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