TSMC CoWoS orders overflow to Intel's Malaysia plant for back-end packaging

ChainCatcher report, according to Economic Daily, TSMC’s advanced packaging CoWoS capacity is in short supply, and industry sources indicate that some back-end orders have been diverted to Intel’s facility in Malaysia, where Intel is assisting with packaging using part of its capacity to serve shared major clients—breaking the previous industry norm of competitive ecosystem separation. TSMC Chairman Mark Liu previously stated at a financial briefing that TSMC focuses on front-end advanced packaging and welcomes additional suppliers to address back-end capacity shortages, offering flexible alternatives for shared customers. The report notes that the primary bottleneck in advanced packaging lies in the slower ramp-up of back-end capacity compared to front-end processes, leading to an expanding CoWoS capacity gap and order diversion. Data from SemiAnalysis Chipbook shows approximately $1.3 billion in HBM has been shipped to Malaysia, with industry analysts suggesting Intel’s local facility has likely developed large-scale HBM integration capabilities. Intel CEO Pat Gelsinger stated that the EMIB-T technology is ensuring reliable yields, positioning Intel in a “unique position to provide support” amid CoWoS capacity constraints. Suppliers with overlapping supply chains—including Unimicron, ASE Group, and Jiadeng—are expected to benefit as well, with Unimicron’s stock rising over 7% on the day. Intel’s EMIB-T-related applications are targeted for mass production by 2027.