TSMC considers 10‑20% price increase for CoWoS advanced packaging
Taiwan Semiconductor Manufacturing Co. (TSMC) is evaluating a price hike of 10% to 20% for its Chip‑on‑Wafer‑on‑Substrate (CoWoS) advanced packaging services, with the increase slated to begin in 2025. The move is driven by surging AI chip demand that outpaces supply, and major customers such as NVIDIA have reportedly approved the higher rates. TSMC expects its CoWoS output to reach 120,000‑130,000 wafers per month by late 2026, yet demand is projected to exceed supply by a similar margin through at least 2028.
Why it matters
The higher packaging fees could lift bill‑of‑materials costs for AI accelerators by roughly 2%‑4.5%, pressuring margins of customers like NVIDIA, AMD and Apple. Investors should watch the implementation timeline, as the price change may affect earnings forecasts for TSMC and its key clients.
Key facts
- 1TSMC is considering a price increase of 10%‑20% for CoWoS services, effective from 2025. cryptobriefing.com
- 2Major customers, including NVIDIA, have reportedly signed off on the higher prices. cryptobriefing.com
- 3TSMC’s CoWoS output is projected to reach 120,000‑130,000 wafers per month by late 2026. cryptobriefing.com
- 4Demand is expected to exceed CoWoS supply by roughly 10%‑20% until at least 2028. cryptobriefing.com
- 5Analyst estimates cite CoWoS monthly capacity exceeding 130,000 wafers in 2026 and 200,000 wafers in 2027. investing.com
- 6The price hike could raise AI accelerator bill‑of‑materials costs by about 2%‑4.5%. cryptobriefing.com
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.