TSMC to Expand CoWoS Capacity by 60% Yearly Through 2026
Customer demand for AI and HPC processors is driving a much greater use of advanced packaging technologies, particularly TSMC's chip-on-wafer-on-substrate (CoWoS) services. As things stand, TSMC is just barely meeting the current demand for this packaging method – never mind future demand – which is why last year the company announced plans to more than double CoWoS capacity by the end of 2024. But as it turns out, just doubling capacity once won't be enough, and the world's largest contract maker of chips is going to have to keep scaling up at a rapid pace.
At its European Technology Symposium last week TSMC announced plans to expand CoWoS capacity at a compound annual growth rate (CAGR) of over 60% till at least 2026. As a result, TSMC's CoWoS capacity will more than quadruple from 2023 levels by the end of that period. And keeping in mind that TSMC is prepping additional versions of CoWoS (namely CoWoS-L) that will enable building system-in-packages (SiPs) of up to eight reticle sizes, increasing CoWoS capacity by four-fold in three years may still not be enough. The good news is that the various third-party off-site assembly and testing (OSAT) providers are also expanding their CoWoS-like capacity, so the demand for advanced packing isn't a problem that TSMC is facing (or resolving) on their own.
And CoWoS isn't the only advanced packaging technology line whose capacity TSMC is looking to rapidly expand. The company also has its system-on-integrated chips (SoIC) 3D stacking technology which adoption is poised to grow in the coming years. To meet demand for its SoIC packaging methods TSMC will expand SoIC capacity at a 100% compound annual growth rate by the end of 2026. As a result, SoIC capacity will grow by eight-fold from 2023 levels by late 2026.
Overall, TSMC itself expects leading-edge SiPs for demanding applications like AI and HPC will adopt both CoWoS and SoIC 3D stacking technologies in the coming years, which is why it needs to increase capacity for both methods to be able to build those highly-complex processors.
Semiconductors
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SK hynix Reports That 2025 HBM Memory Supply Has Nearly Sold Out 
Demand for high-performance processors for AI training is skyrocketing, and consequently so is the demand for the components that go into these processors. So much so that SK hynix this week is very publicly announcing that the company's high-bandwidth memory (HBM) production capacity has already sold out for the rest of 2024, and even most of 2025 has already sold out as well.
SK hynix currently produces various types of HBM memory for customers like Amazon, AMD, Facebook, Google (Broadcom), Intel, Microsoft, and, of course, NVIDIA. The latter is an especially prolific consumer of HBM3 and HBM3E memory for its H100/H200/GH200 accelerators, as NVIDIA is also working to fill what remains an insatiable (and unmet) demand for its accelerators.
As a result, HBM memory orders, which are already placed months in advance, are now backlogging well into 2025 as chip vendors look to secure supplies of the memory stacks critical to their success.
This has made SK hynix the secnd HBM memory vendor in recent months to announce that they've sold out into 2025, following an earlier announcement from Micron regarding its HBM3E production. But of the two announcements, SK hynix's is arguably the most significant yet, as the South Korean firm's HBM production capacity is far greater than Micron's. So while things were merely "interesting" with the smallest of the Big Three memory manufacturers being sold out into 2025, things are taking a more concerning (and constrained) outlook now that SK hynix is as well.
SK hynix currently controls roughly 46% - 49% of HBM market, and its share is not expected to drop significantly in 2025, according to market tracking firm TrendForce. By contrast, Micron's share on HBM memory market is between 4% and 6%. Since HBM supply of both companies is sold out through the most of 2025, we're likely looking at a scenario where over 50% of the industry's total HBM3/HBM3E supply for the coming quarters is already sold out.
This leaves Samsung as the only member of the group not to comment on HBM demand so far. Though with memory being a highly fungible commodity product, it would be surprising if Samsung wasn't facing similar demand. And, ultimately, all of this is pointing towards the indusry entering an HBM3 memory shortage.
Separately, SK hynix said that it is sampling 12-Hi 36GB HBM3E stacks with customers and will begin volume shipments in the third quarter.
Memory
SK hynix Reports That 2025 HBM Memory Supply Has Nearly Sold Out
Demand for high-performance processors for AI training is skyrocketing, and consequently so is the demand for the components that go into these processors. So much so that SK hynix this week is very publicly announcing that the company's high-bandwidth memory (HBM) production capacity has already sold out for the rest of 2024, and even most of 2025 has already sold out as well.
SK hynix currently produces various types of HBM memory for customers like Amazon, AMD, Facebook, Google (Broadcom), Intel, Microsoft, and, of course, NVIDIA. The latter is an especially prolific consumer of HBM3 and HBM3E memory for its H100/H200/GH200 accelerators, as NVIDIA is also working to fill what remains an insatiable (and unmet) demand for its accelerators.
As a result, HBM memory orders, which are already placed months in advance, are now backlogging well into 2025 as chip vendors look to secure supplies of the memory stacks critical to their success.
This has made SK hynix the secnd HBM memory vendor in recent months to announce that they've sold out into 2025, following an earlier announcement from Micron regarding its HBM3E production. But of the two announcements, SK hynix's is arguably the most significant yet, as the South Korean firm's HBM production capacity is far greater than Micron's. So while things were merely "interesting" with the smallest of the Big Three memory manufacturers being sold out into 2025, things are taking a more concerning (and constrained) outlook now that SK hynix is as well.
SK hynix currently controls roughly 46% - 49% of HBM market, and its share is not expected to drop significantly in 2025, according to market tracking firm TrendForce. By contrast, Micron's share on HBM memory market is between 4% and 6%. Since HBM supply of both companies is sold out through the most of 2025, we're likely looking at a scenario where over 50% of the industry's total HBM3/HBM3E supply for the coming quarters is already sold out.
This leaves Samsung as the only member of the group not to comment on HBM demand so far. Though with memory being a highly fungible commodity product, it would be surprising if Samsung wasn't facing similar demand. And, ultimately, all of this is pointing towards the indusry entering an HBM3 memory shortage.
Separately, SK hynix said that it is sampling 12-Hi 36GB HBM3E stacks with customers and will begin volume shipments in the third quarter.
Memory
![](https://twitter.com/share?url=https://compbuddey.blogspot.com/2024/06/tsmc-to-expand-cowos-capacity-by-60_18.html&text=TSMC to Expand CoWoS Capacity by 60% Yearly Through 2026 <p align="center"><a href="https://www.anandtech.com/show/21405/tsmc-to-expand-cowos-capacity-by-60-every-year-through-2026"><img src="https://images.anandtech.com/doci/21405/tsmc-3d-fabric-packaging_575px.png" alt="" /></a></p><p><p>Customer demand for AI and HPC processors is driving a much greater use of advanced packaging technologies, particularly TSMC's chip-on-wafer-on-substrate (CoWoS) services. As things stand, TSMC is just barely meeting the current demand for this packaging method – never mind future demand – which is why last year the company announced plans to more than double CoWoS capacity by the end of 2024. But as it turns out, just doubling capacity once won't be enough, and the world's largest contract maker of chips is going to have to keep scaling up at a rapid pace.</p>
<p>At its European Technology Symposium last week TSMC announced plans to expand CoWoS capacity at a compound annual growth rate (CAGR) of over 60% till at least 2026. As a result, TSMC's CoWoS capacity will more than quadruple from 2023 levels by the end of that period. And keeping in mind that TSMC is prepping additional versions of CoWoS (namely CoWoS-L) that will enable building <a href="https://www.anandtech.com/show/21375/tsmc-readies-8x-reticle-size-super-carrier-interposer">system-in-packages (SiPs) of up to eight reticle sizes</a>, increasing CoWoS capacity by four-fold in three years may <em>still</em> not be enough. The good news is that the various third-party off-site assembly and testing (OSAT) providers are also expanding their CoWoS-like capacity, so the demand for advanced packing isn't a problem that TSMC is facing (or resolving) on their own.</p>
<p>And CoWoS isn't the only advanced packaging technology line whose capacity TSMC is looking to rapidly expand. The company also has its system-on-integrated chips (SoIC) 3D stacking technology which adoption is poised to grow in the coming years. To meet demand for its SoIC packaging methods TSMC will expand SoIC capacity at a 100% compound annual growth rate by the end of 2026. As a result, SoIC capacity will grow by eight-fold from 2023 levels by late 2026.</p>
<p>Overall, TSMC itself expects leading-edge SiPs for demanding applications like AI and HPC will adopt both CoWoS and SoIC 3D stacking technologies in the coming years, which is why it needs to increase capacity for both methods to be able to build those highly-complex processors.</p>
</p> Semiconductors){kind=link}
![](https://www.pinterest.com/pin/create/button/?url=https://compbuddey.blogspot.com/2024/06/tsmc-to-expand-cowos-capacity-by-60_18.html&media=https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_u_Zl4gUAGT0Z8EPrgRENlSCnzlhNKNDfcLU_hoIZEVtbr68x7CWvA1iuRp1bx5hFpDaudmLYlJR4Fz-mRRtWFf8u_lXiov1fEljiX49UoDxxn_lzo8O-odyJhBdMRnpEnTcv1mnOGRmQPSBskU&description=TSMC to Expand CoWoS Capacity by 60% Yearly Through 2026 <p align="center"><a href="https://www.anandtech.com/show/21405/tsmc-to-expand-cowos-capacity-by-60-every-year-through-2026"><img src="https://images.anandtech.com/doci/21405/tsmc-3d-fabric-packaging_575px.png" alt="" /></a></p><p><p>Customer demand for AI and HPC processors is driving a much greater use of advanced packaging technologies, particularly TSMC's chip-on-wafer-on-substrate (CoWoS) services. As things stand, TSMC is just barely meeting the current demand for this packaging method – never mind future demand – which is why last year the company announced plans to more than double CoWoS capacity by the end of 2024. But as it turns out, just doubling capacity once won't be enough, and the world's largest contract maker of chips is going to have to keep scaling up at a rapid pace.</p>
<p>At its European Technology Symposium last week TSMC announced plans to expand CoWoS capacity at a compound annual growth rate (CAGR) of over 60% till at least 2026. As a result, TSMC's CoWoS capacity will more than quadruple from 2023 levels by the end of that period. And keeping in mind that TSMC is prepping additional versions of CoWoS (namely CoWoS-L) that will enable building <a href="https://www.anandtech.com/show/21375/tsmc-readies-8x-reticle-size-super-carrier-interposer">system-in-packages (SiPs) of up to eight reticle sizes</a>, increasing CoWoS capacity by four-fold in three years may <em>still</em> not be enough. The good news is that the various third-party off-site assembly and testing (OSAT) providers are also expanding their CoWoS-like capacity, so the demand for advanced packing isn't a problem that TSMC is facing (or resolving) on their own.</p>
<p>And CoWoS isn't the only advanced packaging technology line whose capacity TSMC is looking to rapidly expand. The company also has its system-on-integrated chips (SoIC) 3D stacking technology which adoption is poised to grow in the coming years. To meet demand for its SoIC packaging methods TSMC will expand SoIC capacity at a 100% compound annual growth rate by the end of 2026. As a result, SoIC capacity will grow by eight-fold from 2023 levels by late 2026.</p>
<p>Overall, TSMC itself expects leading-edge SiPs for demanding applications like AI and HPC will adopt both CoWoS and SoIC 3D stacking technologies in the coming years, which is why it needs to increase capacity for both methods to be able to build those highly-complex processors.</p>
</p> Semiconductors){kind=link}
![](https://web.whatsapp.com/send?text=TSMC to Expand CoWoS Capacity by 60% Yearly Through 2026 <p align="center"><a href="https://www.anandtech.com/show/21405/tsmc-to-expand-cowos-capacity-by-60-every-year-through-2026"><img src="https://images.anandtech.com/doci/21405/tsmc-3d-fabric-packaging_575px.png" alt="" /></a></p><p><p>Customer demand for AI and HPC processors is driving a much greater use of advanced packaging technologies, particularly TSMC's chip-on-wafer-on-substrate (CoWoS) services. As things stand, TSMC is just barely meeting the current demand for this packaging method – never mind future demand – which is why last year the company announced plans to more than double CoWoS capacity by the end of 2024. But as it turns out, just doubling capacity once won't be enough, and the world's largest contract maker of chips is going to have to keep scaling up at a rapid pace.</p>
<p>At its European Technology Symposium last week TSMC announced plans to expand CoWoS capacity at a compound annual growth rate (CAGR) of over 60% till at least 2026. As a result, TSMC's CoWoS capacity will more than quadruple from 2023 levels by the end of that period. And keeping in mind that TSMC is prepping additional versions of CoWoS (namely CoWoS-L) that will enable building <a href="https://www.anandtech.com/show/21375/tsmc-readies-8x-reticle-size-super-carrier-interposer">system-in-packages (SiPs) of up to eight reticle sizes</a>, increasing CoWoS capacity by four-fold in three years may <em>still</em> not be enough. The good news is that the various third-party off-site assembly and testing (OSAT) providers are also expanding their CoWoS-like capacity, so the demand for advanced packing isn't a problem that TSMC is facing (or resolving) on their own.</p>
<p>And CoWoS isn't the only advanced packaging technology line whose capacity TSMC is looking to rapidly expand. The company also has its system-on-integrated chips (SoIC) 3D stacking technology which adoption is poised to grow in the coming years. To meet demand for its SoIC packaging methods TSMC will expand SoIC capacity at a 100% compound annual growth rate by the end of 2026. As a result, SoIC capacity will grow by eight-fold from 2023 levels by late 2026.</p>
<p>Overall, TSMC itself expects leading-edge SiPs for demanding applications like AI and HPC will adopt both CoWoS and SoIC 3D stacking technologies in the coming years, which is why it needs to increase capacity for both methods to be able to build those highly-complex processors.</p>
</p> Semiconductors | https://compbuddey.blogspot.com/2024/06/tsmc-to-expand-cowos-capacity-by-60_18.html){kind=link}
![](mailto:?subject=TSMC to Expand CoWoS Capacity by 60% Yearly Through 2026 <p align="center"><a href="https://www.anandtech.com/show/21405/tsmc-to-expand-cowos-capacity-by-60-every-year-through-2026"><img src="https://images.anandtech.com/doci/21405/tsmc-3d-fabric-packaging_575px.png" alt="" /></a></p><p><p>Customer demand for AI and HPC processors is driving a much greater use of advanced packaging technologies, particularly TSMC's chip-on-wafer-on-substrate (CoWoS) services. As things stand, TSMC is just barely meeting the current demand for this packaging method – never mind future demand – which is why last year the company announced plans to more than double CoWoS capacity by the end of 2024. But as it turns out, just doubling capacity once won't be enough, and the world's largest contract maker of chips is going to have to keep scaling up at a rapid pace.</p>
<p>At its European Technology Symposium last week TSMC announced plans to expand CoWoS capacity at a compound annual growth rate (CAGR) of over 60% till at least 2026. As a result, TSMC's CoWoS capacity will more than quadruple from 2023 levels by the end of that period. And keeping in mind that TSMC is prepping additional versions of CoWoS (namely CoWoS-L) that will enable building <a href="https://www.anandtech.com/show/21375/tsmc-readies-8x-reticle-size-super-carrier-interposer">system-in-packages (SiPs) of up to eight reticle sizes</a>, increasing CoWoS capacity by four-fold in three years may <em>still</em> not be enough. The good news is that the various third-party off-site assembly and testing (OSAT) providers are also expanding their CoWoS-like capacity, so the demand for advanced packing isn't a problem that TSMC is facing (or resolving) on their own.</p>
<p>And CoWoS isn't the only advanced packaging technology line whose capacity TSMC is looking to rapidly expand. The company also has its system-on-integrated chips (SoIC) 3D stacking technology which adoption is poised to grow in the coming years. To meet demand for its SoIC packaging methods TSMC will expand SoIC capacity at a 100% compound annual growth rate by the end of 2026. As a result, SoIC capacity will grow by eight-fold from 2023 levels by late 2026.</p>
<p>Overall, TSMC itself expects leading-edge SiPs for demanding applications like AI and HPC will adopt both CoWoS and SoIC 3D stacking technologies in the coming years, which is why it needs to increase capacity for both methods to be able to build those highly-complex processors.</p>
</p> Semiconductors&body=https://compbuddey.blogspot.com/2024/06/tsmc-to-expand-cowos-capacity-by-60_18.html){kind=link}
Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's.
SK hynix Reports That 2025 HBM Memory Supply Has Nearly Sold Out
Demand for high-performance processors for AI training is skyrocketing, and consequently so is the demand for the components that go into these processors. So much so that SK hynix this week is very publicly announcing that the company's high-bandwidth memory (HBM) production capacity has already sold out for the rest of 2024, and even most of 2025 has already sold out as well.
SK hynix currently produces various types of HBM memory for customers like Amazon, AMD, Facebook, Google (Broadcom), Intel, Microsoft, and, of course, NVIDIA. The latter is an especially prolific consumer of HBM3 and HBM3E memory for its H100/H200/GH200 accelerators, as NVIDIA is also working to fill what remains an insatiable (and unmet) demand for its accelerators.
As a result, HBM memory orders, which are already placed months in advance, are now backlogging well into 2025 as chip vendors look to secure supplies of the memory stacks critical to their success.
This has made SK hynix the secnd HBM memory vendor in recent months to announce that they've sold out into 2025, following an earlier announcement from Micron regarding its HBM3E production. But of the two announcements, SK hynix's is arguably the most significant yet, as the South Korean firm's HBM production capacity is far greater than Micron's. So while things were merely "interesting" with the smallest of the Big Three memory manufacturers being sold out into 2025, things are taking a more concerning (and constrained) outlook now that SK hynix is as well.
SK hynix currently controls roughly 46% - 49% of HBM market, and its share is not expected to drop significantly in 2025, according to market tracking firm TrendForce. By contrast, Micron's share on HBM memory market is between 4% and 6%. Since HBM supply of both companies is sold out through the most of 2025, we're likely looking at a scenario where over 50% of the industry's total HBM3/HBM3E supply for the coming quarters is already sold out.
This leaves Samsung as the only member of the group not to comment on HBM demand so far. Though with memory being a highly fungible commodity product, it would be surprising if Samsung wasn't facing similar demand. And, ultimately, all of this is pointing towards the indusry entering an HBM3 memory shortage.
Separately, SK hynix said that it is sampling 12-Hi 36GB HBM3E stacks with customers and will begin volume shipments in the third quarter.
Memory
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