TSMC is planning to increase prices for its CoWoS advanced packaging services by 10–20% starting in 2025. Major customers, including NVIDIA, have reportedly already approved these adjustments.
The company aims to reach a production capacity of 120,000–130,000 wafers per month by late 2026. Despite this growth, demand is projected to exceed supply by 10–20%, with the bottleneck expected to persist until at least 2028.
To address supply constraints, TSMC entered a $2 billion, five-year partnership with GlobalFoundries. Under this agreement, GlobalFoundries will produce silicon interposers at its facility in Malta, New York, with production scheduled to begin in the first half of 2028.
Other providers, such as ASE Technology, have already increased their advanced packaging quotes by more than 20% in 2026. For major AI chip customers like NVIDIA and AMD, these price hikes are expected to raise the total bill-of-materials costs for AI accelerators by approximately 2–4.5%.
