NVIDIA and AMD have reserved all of TSMC's CoWoS and SoIC advanced packaging for 2024 and 2025

AMD and NVIDIA are both pumping out new generations of AI hardware, with the two GPU giants eating all of TSMC's advanced packaging capacity for not just 2024, but also 2025.

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In a new report from UDN, the site reports that TSMC will contract advanced packaging production capacity of its in-house CoWoS and SoIC for this and next year, as AI GPU hardware orders aren't slowing down. TSMC expects revenue contributed by server AI processors to more than double this year, and once NVIDIA's new Blackwell B200 AI GPUs are being pumped out later this year, 2025 is going to be a bananas year for TSMC.

In response to the insatiable AI demand, 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.

NVIDIA's new Blackwell B200 AI GPU is made on TSMC's 4NP process node, an enhanced version of TSMC's N4 process node with higher capacity and upgraded HBM3E memory. Meanwhile, AMD's new Instinct MI300 AI accelerators are made using TSMC's 6nm and 5nm process nodes.