The shortage of compute GPUs for AI and high-performance computing is pushing up demand for chip-on-wafer-on-substrate (CoWoS) packaging at TSMC
TSMC, the foundry responsible for manufacturing chips for major tech giants like Nvidia, Amazon, Broadcom, Cisco, and Xilinx, plans to expand its capacity for CoWoS packaging in response to increased demand.
CoWoS packaging has become essential in addressing the AI chip shortage, which has been driven by surging demand from cloud giants and a lack of supply due to the complexities of developing CoWoS packages.
TSMC aims to increase its current CoWoS capacity from 8,000 wafers per month to 11,000 wafers per month by the end of 2023 and further to around 14,500 – 16,600 wafers by the end of 2024 to meet the growing demand from its top customers.
In anticipation of the demand for Nvidia's compute GPUs, TSMC has already booked 40% of its available CoWoS capacity for the coming year (FY24/2023). However, the foundry is also exploring options with its secondary supplier, Amkor Technology, and United Microelectronics (UMC) to address the supply shortage.
While CoWoS packaging is not exclusive to Nvidia, the company has been particularly successful in adopting this packaging technology for its compute GPUs, such as the A100, A30, A800, H100, and H800. AMD's upcoming Instinct MI100, MI200/MI250X, and MI300 will also utilize CoWoS packaging.
TSMC is collaborating with multiple suppliers globally to meet the increased CoWoS packaging needs of its customers. These suppliers include Rudolph Technologies, Disco, SUSS MicroTec, GPTC, and Scientech.
Strategic changes are being implemented by TSMC to meet the demand, including redistributing some of its InFO production capacity and increasing its in-house CoWoS production. Additionally, part of its oS manufacturing will be outsourced to other assembly and test (OSAT) companies like Siliconware Precision Industries (SPIL).
TSMC recently opened its Advanced Backend Fab 6 (ABF6), which will expand its advanced packaging capacity for frontend 3D stacking System on Integrated Chips (CoW, WoW) technologies and backend 3D packaging methods (InFO, CoWoS). ABF6 features an extensive five-in-one intelligent automated material handling system that controls production flow and detects defects instantly, increasing yield, which is crucial for complex multi-chiplet assemblies.
The demand for CoWoS packaging is expected to continue growing, given its crucial role in advanced computing. Microsoft, for example, has announced that its upcoming 7180 GPU will be the "most advanced accelerator for artificial intelligence." As a leading cloud provider and AI player, Microsoft is likely to be one of the main customers for CoWoS packaging.
