TSMC is reportedly considering a price increase of 10% to 20% for its CoWoS advanced packaging services. The potential hike comes as demand for AI accelerators, including server CPUs and custom ASICs, continues to strain production capacity. TSMC has not officially confirmed these reports, while other foundries and testing firms are also evaluating similar adjustments.
The supply chain is facing significant bottlenecks, with equipment delivery times extending from 3–6 months to 6–8 months. Nomura Securities estimates that testing times for Nvidia's Blackwell chips are four times longer than for Hopper, with the upcoming Rubin generation expected to take seven times longer. This trend is putting further pressure on existing testing facilities.
Beyond packaging, TSMC is planning to raise wafer foundry prices by 3% to 6% starting in January 2027, with the highest increases targeting 2nm and 3nm processes. The company is actively expanding capacity and has moved its 5x reticle size CoWoS packaging into mass production, while also developing larger solutions and new CoPoS technology.
To address supply constraints, TSMC has signed a multi-year agreement worth $2 billion with GlobalFoundries. Under this deal, GlobalFoundries will produce silicon interposers at its New York facility, with volume production expected to begin in the first half of 2028. This partnership aims to support the CoWoS supply chain, though it will not resolve immediate bottlenecks.
