CoWoS Packaging Capacity Becomes Binding Constraint; Nvidia Holds 60%, TSMC Outsources CoW

Nvidia now holds 60% of TSMC's CoWoS packaging capacity, confirming allocation as the binding constraint for AI chip delivery. TSMC is shifting CoW (chip-on-wafer) packaging work to third-party OSAT providers like ASE, signaling severe capacity pressure beyond internal expansion. This outsourcing move challenges the assumption that TSMC keeps all advanced packaging in-house and may impact margins and delivery timelines. CoWoS lead times remain 50+ weeks.