TSMC is reportedly considering a 20 percent price increase for its CoWoS packaging technology. This move comes as demand for AI chips, including Nvidia's Blackwell and upcoming Rubin series, puts significant strain on existing production capacity.
The supply chain faces bottlenecks due to extended testing cycles. Blackwell chips require three to four times longer to test than the previous Hopper generation, while Rubin chips may take up to seven times longer. Furthermore, lead times for manufacturing equipment have increased from three to six months to eight months.
To secure necessary tools, TSMC has placed orders at current market prices rather than negotiating discounts. The company's equipment requirements have nearly doubled in six months, reaching 1.9 times the original estimate by July.
TSMC is expanding its supply chain, including a five-year, $2 billion contract with GlobalFoundries for silicon interposer production starting in 2028. Additionally, the company is weighing broader price hikes for 2027, with wafer costs for advanced nodes expected to rise by 5 to 10 percent.
Customers requiring capacity beyond their initial allocations may face premiums of up to 25 percent. Industry projections from Trendforce suggest TSMC aims to increase monthly capacity from over 106 000 wafers in 2026 to 227 000 wafers in 2027.
