Packaging/CoWoS/HBM/Glass shortages
Key Questions
What is the current status of TSMC's CoWoS capacity?
CoWoS capacity of 130k wafers per month is sold out through 2027, with 95% utilization and 18-month lead times creating a $500B bottleneck. Yields exceed 98%. Bank of America projects 68% capacity growth in 2027.
How is TSMC addressing advanced packaging shortages?
TSMC is expanding CoWoS capacity and developing glass substrates and CoPoS with Corning for Rubin and HBM4. AblePrint, a supply chain material maker, reported 142% revenue growth amid the AI packaging boom.
What supply constraints affect HBM and glass substrates?
High-NA EUV delays from ASML and tight supply of glass substrates for HBM4 are key constraints. CoWoS demand from NVIDIA at 60% utilization highlights the packaging bottleneck.
Why is CoWoS considered a major AI industry bottleneck?
With 98%+ yields but sold-out capacity through 2027, CoWoS packaging limits AI chip production scaling. This $500B supply issue is not fully priced into markets according to analysts.
What role does AblePrint play in TSMC's packaging expansion?
AblePrint benefits from AI chip demand driving advanced packaging growth, achieving 142% revenue growth. It supplies materials critical to TSMC's high-yield CoWoS processes.
How are glass substrates impacting future AI chips?
Glass substrates via CoPoS are being developed with Corning for Rubin and HBM4 nodes to overcome current packaging limits. This shift addresses CoWoS capacity constraints for next-gen AI hardware.
What is BofA's outlook on TSMC packaging capacity?
BofA views TSMC as a clear winner due to 68% CoWoS capacity growth expected in 2027. Strong demand and high utilization support continued expansion amid AI growth.
Are there any yield improvements in TSMC's advanced packaging?
TSMC reports CoWoS yields above 98% for 5.5-reticle technology, supporting efficient scaling. This high yield helps mitigate some supply pressures despite long lead times.
CoWoS 130k/mo sold out '27+ (NVDA 60%); 95% utilization, 18-month lead times, $500B bottleneck; 98%+ yields. BofA notes 68% CoWoS capacity growth in 2027. Glass substrates/CoPoS with Corning for Rubin/HBM4. ASML confirms tight supply/High-NA delays. AblePrint revenue +142%.