TAIPEI (TVBS News) — Taiwan Semiconductor Manufacturing Company (台積電, TSMC) will outsource advanced packaging orders to meet surging demand, supply chain sources reported Monday (Dec. 9). The chipmaker plans to redirect overflow orders to Taiwanese firms ASE (日月光) and SPIL (矽品) to ensure customer satisfaction. Wccftech first reported the decision as TSMC faces capacity constraints in its CoWoS advanced packaging technology.
TSMC's CoWoS advanced packaging technology has attracted major clients including NVIDIA, AMD, Google, Apple, and MediaTek (聯發科). The outsourcing strategy will help TSMC manage overflow orders effectively while maintaining service quality. NVIDIA, AMD, and Apple are the primary customers for CoWoS-L and CoWoS-S packaging variants, while Google, Qualcomm, and MediaTek explore alternative options.
TSMC is expanding CoWoS production lines and plans to build new facilities in Taiwan and the United States to meet urgent client needs. ASE announced it will invest billions of dollars (exact amount not disclosed) to expand production capacity, aligning with TSMC's efforts to fulfill customer demand. The expansion reflects strategic measures TSMC is taking to maintain its semiconductor industry leadership and competitive advantage.
Companies like Google, Qualcomm, and MediaTek (聯發科) have been exploring alternative packaging options beyond TSMC's CoWoS technology. The increased outsourcing demand from TSMC provides Intel with broader production line resources, offering a way to avoid competition over customer orders. This shift in the supply chain creates new opportunities for competitors in the advanced packaging market. ◼