TSMC is significantly expanding its production

Posted on by Henrik

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading semiconductor foundry, is riding the wave of surging AI demand, particularly from companies like NVIDIA and AMD, which rely heavily on its advanced chip manufacturing capabilities.

TSMC’s Advanced Packaging Expansion

TSMC is significantly expanding its production capacity for advanced packaging technologies to meet the burgeoning demand for AI hardware. These technologies include CoWoS (Chip-on-Wafer-on-Substrate) and SoIC (System on Integrated Chips), which are crucial for packaging complex AI processors that require high bandwidth and efficient cooling.

  • CoWoS Expansion: TSMC plans to increase its CoWoS monthly production capacity from 15,000 units in 2023 to an expected 45,000-50,000 units by the end of 2024. This massive 3x growth in capacity will continue into 2025, enabling TSMC to meet the growing needs of AI hardware manufacturers.
  • SoIC Expansion: Similarly, SoIC production capacity will be expanded from 2,000 units to 5,000-6,000 units by the end of 2024, with further growth to 10,000 units by the end of 2025.

Rising Demand from AI Giants

The AI boom has led to unprecedented demand for advanced processors, particularly GPUs, which are essential for AI training and inference tasks.

  • NVIDIA’s Blackwell B200: TSMC is expected to play a pivotal role in NVIDIA’s upcoming Blackwell B200 AI GPUs, which will be manufactured using the advanced 4NP process node. This node is an improved version of TSMC’s N4, offering higher capacity and support for HBM3E memory, which is vital for AI workloads.
  • AMD’s Instinct MI300: AMD’s Instinct MI300 AI accelerators, another high-performance offering, leverage TSMC’s 5nm and 6nm process nodes, ensuring that they meet the industry’s high demands for AI processing.

Looking Forward

TSMC’s aggressive capacity expansion aligns with the rapidly increasing demand for AI processors, reflecting the broader industry’s trend towards advanced computing. The company’s focus on advanced packaging and cutting-edge process nodes makes it a critical player in the AI hardware supply chain, ensuring that it will continue to be a dominant force in the semiconductor industry in the coming years.