TSMC Considers 10-20% Price Increase for Advanced Packaging, Impacting NVIDIA and AMD

Huo Xing Finance reports that on October 27, according to Taiwanese media citing supply chain sources, TSMC is considering raising prices for its advanced packaging services by 10% to 20%, primarily affecting CoWoS packaging technology used in high-end AI chips. If implemented, the price increase would put upward pressure on production costs for chipmakers such as NVIDIA and AMD. CoWoS integrates chips with high-bandwidth memory (HBM) within a single package and is a critical process for high-end AI accelerator chips. As demand expands from GPUs to server CPUs and custom AI chips (ASICs), capacity for advanced packaging remains tight. The report estimates that TSMC’s monthly CoWoS capacity will exceed 130,000 wafers by 2026 and could rise further to over 200,000 wafers by 2027. Even with ongoing capacity expansion, growing demand may still drive up packaging prices. Higher costs could pressure profit margins for companies like NVIDIA that heavily rely on CoWoS, and customers such as Apple may also face indirect impacts from rising supply chain expenses. However, the proposed price increases are still under consideration.