Taiwan’s TSMC pressing backend equipment suppliers on deliveries

台灣台積電向後端設備供應商施壓交貨

TSMC sees increased advanced packaging need due to GPU demand for AI and high-performance computing

TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Co. (TSMC) has reportedly increased the pace of its orders with backend equipment suppliers as it looks to expand its advanced packaging capacity.

According to DigiTimes, demand for graphics processing units (GPUs) for artificial intelligence and high-performance computing has limited TSMC’s chip-on-wafer-on-substrate (CoWoS) packaging capacity. DigiTimes said TSMC is looking to increase monthly CoWoS capacity from 8,000 to 11,000 wafers per month by the end of 2023 and then to about 14,500 to 16,600 by the end of 2024.

The report also said clients like Nvidia, Amazon, Cisco, Xilinx, and Broadcom have increased their demand for TSMC’s advanced packaging services, which has led the company to renew orders for packaging equipment and materials.

DigiTimes claimed that Nvidia has already reserved around 40% of TSMC’s CoWoS capacity for next year, according to Tom’s Hardware. It also said that due to the shortage in capacity, Nvidia has begun considering tapping secondary suppliers like United Microelectronics (UMC) and Amkor Technology, but these orders are significantly smaller.

Due to TSMC’s increased packaging demand, it is partnering with Rudolph Technologies, Disco, SUSS MicroTec, Grand Process Technology (GPTC), and Scientech. These suppliers are being asked to provide nearly 30 sets of tools by mid-2024, per DigiTimes.

TSMC has also started to move some of its advanced packaging capacity from its Longtan site to its Southern Taiwan Science Park sites, while at the same time fast-tracking its Longtan facility expansion. The Taiwanese chipmaker has also expanded internal CoWoS capacity while outsourcing some of its oS production to other assembly and test firms.