TSMC is reportedly giving its all regarding the highly demanding CoWoS supply, as the Taiwanese giant plans to double down on production this year.
TSMC Doubling CoWoS Production As AI Bandwagon Is Expected To Ride Its Way Into 2024, Expanding The Supply & Demand Chain To New Levels
CoWoS packaging is considered a vital part of creating the necessary hardware for AI computing, especially for AI accelerators, such as NVIDIA’s H100s. With the advent of the generative AI hype, GPU manufacturers rushed towards “pushing out” AI-focused products at their maximum capacity, which ultimately prompted the demand for CoWoS packaging as well.
Since the rise in demand was tremendous, packaging suppliers such as TSMC couldn’t cope with it and are still facing issues even though we are almost a year into the AI craze. It is said that industry leaders such as AMD and NVIDIA have played a huge role in the rise in CoWoS demand and things won’t stop here.
According to a report by DigiTimes, TSMC has expressed confidence in its CoWoS supply going forward, stating that the firm has managed to attract huge interest from the AI segment, and the involved companies are “cooperating with TSMC.” The report states that TSMC’s monthly CoWoS output could reach up to 32,000 units by the end of 2024, and this figure could potentially reach 44,000 units by the end of next year as well, which means that the firm is continuously working on the upgrade of its existence facilities, to ensure a streamlined supply of packaging, without any disruptions, such as those witnessed in the past.
It is important to know that TSMC has indeed “reserved” a hefty share of its CoWoS supply for NVIDIA since not only is Team Green an important client, but the Taiwan giant knows who to side with going ahead. Despite harsh US regulations, NVIDIA’s dominance in the AI markets doesn’t look to stop for now, with firms like Meta rapidly expanding their AI GPU portfolio, with reports of the firm expanding to over 600,000 of NVIDIA’s H100s. This shows that Team Green and its AI weapons are indeed to shine in the markets moving ahead, despite setbacks and hurdles faced by the company.
In the midst of it, TSMC could potentially lose a valuable client, at least in the CoWoS race. It was disclosed previously that AMD is looking for other suppliers since the firm believes that TSMC is distracted from catering to the demands of NVIDIA, which is why it has lined up alternative suppliers, with the likes of ASE Investment Holdings, Power Technologies, KYEC Electronics, and Winbond Electronics. The future is indeed interesting and competitive for the AI segment, along with the firms attached to it.
News Source: DigiTimes