January 3, 2025 /SemiMedia/ — TSMC is set to significantly increase its advanced packaging capacity in Taiwan, driven by strong demand from Nvidia, according to industry insights. The company's monthly CoWoS capacity is projected to reach between 65,000 and 75,000 wafers by 2025, with expectations to expand further to 90,000 to 110,000 wafers per month by 2026.

Nvidia is anticipated to dominate the CoWoS market, accounting for 63% of total demand in 2025, reaffirming its dominant role in the technology. Broadcom follows with a 13% share, while AMD and Marvell each hold 8%, indicating significant interest in CoWoS technology from both companies. Additional contributors include Amazon Web Services (AWS) and AI chipmakers (3%), Intel (2%), and Xilinx (1%).

In a separate report, TrendForce also predicted that the demand for TSMC's CoWoS-L will surpass CoWoS-S by the first half of 2025, with the former expected to make up over 60% of the total demand. This shift will likely push TSMC's CoWoS capacity to nearly double by the end of 2025, reaching 75,000 to 80,000 wafers per month.

The report also noted that cloud service giants, including Amazon AWS, are ramping up their investment in ASIC AI chips, which will further drive up demand for CoWoS in 2025.