TSMC Doubles Advanced Chip Packaging for AI Demand

TSMC Doubles Advanced Chip Packaging for AI Demand

In Summary

  • TSMC to double advanced chip packaging capacity by 2025 to meet AI demand
  • Nvidia expected to occupy over 50% of TSMC’s expanded capacity
  • SK Hynix accelerates timeline for next-gen memory chip for Nvidia
  • Both companies bolster positions as top suppliers in the AI hardware market


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.

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