TSMC to Increase CoWoS Capacity Amid Surge in AI Chip Demand

According to reports from Taiwanese media, Taiwan Semiconductor Manufacturing Company (TSMC) has decided to increase its advanced CoWoS (Chip on Wafer on Substrate) packaging capacity targets for 2026-2027 in response to the strong demand for AI chips. The company will add two new CoWoS production lines at its AP8 plant in the Southern Taiwan Science Park and shift part of the capacity originally planned for SoIC (System on Integrated Chip) processes at its Chiayi AP7 plant to CoWoS production.

Additionally, sources indicate that TSMC is considering building a new advanced packaging facility in Yunlin and plans to expand its packaging operations at its Arizona subsidiary in the United States, increasing the number of facilities from two to four.

As a result of this shift in resources, the mass production timeline for other packaging technologies, such as Panel-Level CoPoS (Chip on Panel on Substrate), has been delayed until 2029.