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AI chips produced by TSMC will become "more expensive" in the future due to supply chain capacity upgrades

Update time : 2023-10-13 09:32:17

On September 26, according to Taiwan's "United Daily News", as TSMC's supply chain expands the production capacity of CoWoS advanced packaging, the price increase of these intermediate membranes will eventually push up the cost of AI chips produced by the company.
Due to strong demand for AI products, TSMC is investing billions of dollars to upgrade its packaging capacity. The company announced in July that it would invest $2.89 billion (note: currently about 21.126 billion yuan) to build a new chip packaging plant. The company aims to increase packaging capacity to 30,000 per month by the end of 2024. Note: CoWoS is a technology that stacks multiple chips together. This technology can place these chips on a silicon dielectric film to improve their performance.
It is reported that TSMC is purchasing CoWoS machines from equipment factories such as Xin Yun, Wanrun, Hongsu, Ti Sheng, Qunyi, etc. These companies are expected to be the biggest beneficiaries of the growth in demand for TSMC CoWoS products. It is expected to be delivered and installed in the first half of next year. Industry sources revealed that TSMC currently has a monthly production capacity of about 12,000 pieces of CoWoS advanced packaging. After the previous expansion, the original monthly production capacity will be gradually expanded to 15,000 to 20,000 pieces. After that, additional equipment will be stationed in the factory building. TSMC's monthly production capacity will reach more than 25,000 pieces, or even move closer to 30,000 pieces, thereby increasing TSMC's ability to take on AI-related orders. Due to the upgrade of related production capacity, TSMC's AI chips will also usher in price increases.
In addition, Taiwanese media pointed out that Nvidia is currently TSMC's largest customer for CoWoS advanced packaging, with orders accounting for 60% of the production capacity. Recently, in response to strong demand for AI computing, Nvidia has expanded its orders, and urgent orders from customers such as Amazon and Broadcom have also begun to emerge. Given the urgent demand for CoWoS advanced packaging capacity from customers, TSMC has once again pursued 30% plant orders for equipment, and requested to complete delivery and installation by the end of the second quarter of next year, and start mass production in the second half of next year.

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