TSMC Expands CoWoS Capacity as AI Chip Orders Spill Over to ASE and Amkor

Explosive growth in global artificial intelligence infrastructure demand has put CoWoS advanced packaging, an essential technology for high-performance computing chips, in the spotlight. As the world’s leading semiconductor manufacturer, TSMC’s CoWoS capacity directly determines the pace of AI chip shipments from technology giants including Nvidia and AMD. Changes in that capacity have become a key indicator of the global AI industry’s development.

TSMC is aggressively expanding production and is expected to reach monthly CoWoS capacity of at least 200,000 wafers in 2027. However, Nvidia is projected to secure more than half of that capacity, forcing major customers such as AMD to seek alternatives. Some advanced-packaging orders are consequently spilling over to outsourced semiconductor assembly and test providers including ASE Technology Holding and U.S.-based Amkor, fueling an order boom outside TSMC’s supply chain.