TSMC to expand advanced packaging capacity at 3 plants: CoWoS, SoIC, SoW for AI GPU demand

TSMC is focused on getting its advanced packaging production capacity to new levels, with the company boosting advanced packaging capacity at its Zhonghe, Nanka, and Jiake fabs, which are "all in the process of expanding production".

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The news is coming from Taiwanese media outlet Ctee, reporting that the Chiayi Science Park was finalized this year and is expected to build two advanced packaging plants first. The first phase of Jiake will see the breaking ground ceremony in the coming weeks, and into operation in the second half of the year.

The second phase of Jiake is expected to begin construction in Q2 2024, with operation in Q1 2027 which is still a few years away, which Ctee reports will continue to expand the market share of AI and HPC.

TSMC is also in the middle of developing next-generation advanced packaging technologies, including new technologies and processes thrown into the mix, including CoWoS-R, SoW, and more. The development of advanced packaging technology is one of the cornerstones of the chip industry and its insatiable thirst to keep going.

On top of this, TSMC is now actively expanding its advanced packaging production capacity, with industry estimates that TSMC's CoWoS monthly production capacity will be between 45,000 and 50,000 by the end of 2024. This is a gigantic 3x increase from the 15,000 in 2023, and it's expected to hit 50,000 in 2025

When it comes to SoIC, TSMC expects monthly production capacity to reach 5000 to 6000 pieces by the end of the year, which is another 3x jump from the 2000 pieces made in 2023, and it's expected to reach an astonishing 10,000 pieces per month by the end of 2025.