Taipei, Thursday, November 07, 2024 – Taiwan Semiconductor Manufacturing Co. (TSMC) is set to double its production capacity for advanced chip packaging by 2025, a move driven by escalating demand for artificial intelligence (AI) chips from tech giants like Nvidia, Microsoft, Amazon, and Alphabet.
The company’s advanced Chip-on-Wafer-on-Substrate (CoWoS) packaging technology is increasingly sought after to support AI applications, underscoring TSMC’s critical role in the rapidly growing AI hardware sector.
As AI technology propels demand for high-performance chips, Nvidia, the primary consumer of TSMC’s advanced packaging, is expected to occupy over 50% of TSMC’s expanded capacity.
TSMC’s facility in Arizona will partner with Amkor Technology, aiming to strengthen its packaging production in the United States to meet demand from AI-focused companies.