November 1, 2024 /SemiMedia/ — Global demand for CoWoS and similar advanced packaging technology is expected to grow by 113% in 2025, driven by strong demand for cloud AI accelerators, according to DIGITIMES Research.

Capacity expansion by major suppliers
Leading suppliers TSMC, ASE Technology Holding (including SPIL), and Amkor are ramping up capacity. By the fourth quarter of 2025, TSMC’s monthly capacity is projected to increase to 65,000 12-inch wafer equivalents, while ASE and Amkor are expected to reach a combined capacity of 17,000 wafers.

NVIDIA fuels demand growth
NVIDIA, TSMC’s key customer for CoWoS technology, is set to drive this transition with mass production of its Blackwell GPU series, leading TSMC to focus primarily on the CoWoS-Long (CoWoS-L) process by Q4 2025. CoWoS-L is forecasted to account for 54.6% of TSMC’s total CoWoS capacity by then, with CoWoS-S and CoWoS-R processes making up 38.5% and 6.9%, respectively.

New orders and future outlook
DIGITIMES Research projects that NVIDIA’s demand for the CoWoS-L process will grow by 1018% in 2025. Broadcom and Marvell, which provide ASIC design services for Google and Amazon, are also placing larger wafer orders.

Citi Research notes that advanced packaging is essential for AI chip success. TSMC’s current monthly CoWoS capacity of approximately 30,000-40,000 wafers is expected to reach 90,000-100,000 wafers by the end of 2025, with annual capacity potentially hitting 700,000 wafers, nearly doubling this year’s estimated output.