Nvidia once again purchases additional CoWoS packaging equipment from TSMC, and its production capacity reaches its limit again

According to news from this site on September 25, as the demand for NVIDIA AI chips is booming, the foundry TSMC has also been increasing its production capacity.

According to Taiwanese media "Economic Daily" reported that TSMC CoWoS (Note: Chip-on-Wafer-on-Substrate) advanced packaging production capacity is full and actively expanding production, it is reported that major customer Nvidia is expanding AI chips Due to the volume of orders placed and the emergence of urgent orders from major manufacturers such as AMD and Amazon, TSMC is urgently looking for equipment suppliers to purchase additional CoWoS equipment. In addition to the existing production increase target, the equipment order volume will be increased by another 30% , highlighting that the current AI market continues to be hot.

It is reported that TSMC is seeking assistance from equipment manufacturers such as Xinyun, Wanrun, Hongsu, Tisheng, and Qunyi this time, and is requesting to expand the reinforcement of CoWoS equipment. It is expected to complete delivery and installation in the first half of next year , related equipment manufacturers are extremely busy. Not only have they previously won orders for TSMC's original production expansion target machines, but now they have received another 30% of the follow-up orders. Revenue will increase significantly in the second half of the year, and it will also increase the visibility of related equipment manufacturers' on-hand orders. Until the first half of next year.

Industry sources revealed that TSMC’s current CoWoS advanced packaging monthly production capacity is about 12,000 pieces. After the previous expansion of production, it was originally planned to gradually expand the monthly production capacity to 15,000 to 20,000 pieces.Now it is adding additional equipment The move will bring the monthly production capacity to more than 25,000 pieces, or even closer to 30,000 pieces, which will greatly increase TSMC's ability to accept AI-related orders.

According to people familiar with the matter, the equipment manufacturer that was exposed did not respond to the dynamic evaluation of the order. With the large-scale promotion of artificial intelligence computing applications, including assisted machine autonomous learning, training large language models (LLM), and artificial intelligence reasoning, practical applications in fields such as autonomous vehicles and smart factories are also increasing. Therefore, for The demand for artificial intelligence chips will continue to maintain strong growth

The report also stated that major customers such as Nvidia and AMD have increased their investment in wafer foundries in the third quarter, effectively pushing TSMC's 7nm and 5nm advanced Process capacity utilization,

However, CoWoS advanced packaging production capacity is in short supply and has become the biggest bottleneck in the production chain.

TSMC President Wei Zhejia mentioned at the FA Conference a few days ago that TSMC has actively expanded CoWoS advanced packaging production capacity,

hopes to alleviate the tight pressure on production capacity after the second half of 2024. It is understood that TSMC has squeezed out factory space in Zhuke, Zhongke, Nanke, Longtan and other places to increase CoWoS production capacity. The Zhunan packaging and testing plant will also simultaneously build advanced packaging production lines such as CoWoS and TSMC SoIC.

According to industry news, TSMC plans to begin expanding CoWoS advanced packaging production capacity in the second quarter. They placed the first batch of orders with equipment cooperatives in May, and expect that this batch of equipment will be in place and put into use by the end of the first quarter of next year. By then, the monthly production capacity of CoWoS advanced packaging will increase to 15,000 to 20,000 pieces. Although TSMC has significantly increased its CoWoS production capacity, due to the explosion of client demand, they have recently increased orders from equipment cooperatives. Equipment practitioners pointed out that NVIDIA is currently TSMC's largest CoWoS advanced packaging customer. , orders account for 60% of production capacity. Recently, due to strong demand for AI computing, Nvidia has expanded its orders, and urgent orders from customers such as AMD, Amazon, and Broadcom have also begun to appear. Taking into account the urgent demand from customers for CoWoS advanced packaging production capacity, TSMC has once again pursued 30% of the equipment factory's order, and requires that the delivery and installation be completed by the end of the second quarter of next year, and mass production will begin in the second half of next year.

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