In order for NVIDIA's continued AI GPU dominance it needs advanced packaging -- TSMC is the king of the semiconductor industry, and has the world's bleeding-edge advanced packaging technology -- but NVIDIA needs more, much more.

NVIDIA's new Blackwell AI GPUs have multiple chips glued together using a complex chip on wafer on substrate (CoWoS) advanced packaging technology that TSMC makes, with NVIDIA CEO Jensen Huang making some new remarks on needing more CoWoS advanced packaging capacity.
Huang said on the sidelines of an event by chip supplier Siliconware Precision Industries in Taiwan's central Taichung city: "As we move into Blackwell, we will use largely CoWoS-L. Of course, we're still manufacturing Hopper, and Hopper will use CowoS-S. We will also transition the CoWoS-S capacity to CoWos-L. So it's not about reducing capacity. It's actually increasing capacity into CoWoS-L".
- Read more: TSMC begins equipment move-in at its biggest CoWoS packaging plant in April
- Read more: TSMC could build CoWoS advanced packaging plants in the US and Japan
- Read more: NVIDIA R100 AI GPU: TSMC 3nm with CoWoS-L packaging, HBM4 in Q4 2025
- Read more: NVIDIA renames Blackwell Ultra to B300 series: HBM3E 12-Hi, TSMC CoWoS-L
- Read more: This is what 2.5D aka CoWoS advanced packaging looks like: GPU logic die, HBM, interposer
Until now, NVIDIA has relied on using only one style of CoWoS advanced packaging -- CoWoS-S -- but the shift to CoWoS-L is happening. Taiwan media is reporting that NVIDIA was cutting CoWoS-S orders from TSMC, and that it could be a "potential hit" to the TSMC revenue.
NVIDIA CEO Jensen Huang added that the amount of advanced packaging capacity was "probably 4 times" the amount available less than two years ago now.